10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

¨ Transition report under section 13 or 15(d) of the Exchange Act

For the transition period from to

Commission File Number 000-31380

APPLIED MINERALS, INC.

(Exact name of registrant as specified in its charter)

Delaware	82-0096527
(State or other jurisdiction of incorporation or organization)	(I. R. S. Employer Identification No.)
1200 Silver City Road, PO Box 432, Eureka, UT	84628
(Address of principal executive offices)	(Zip Code)

(435) 433-2059

(Issuer’s Telephone Number, Including

Area Code)

Former name, former address, and former fiscal year, if changed since last report

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

YES  ¨ NO  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

YES  ¨  NO  x 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES  x  NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  x  No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller-reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	¨	Accelerated Filer	¨	Non-accelerated Filer	¨	Smaller Reporting Company	x
Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to

x

Section 13(a) of the Exchange Act.

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES  ¨ NO  x

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August

22, 2022 was 366,967,696.

DOCUMENTS INCORPORATED BY REFERENCE: None.

APPLIED MINERALS, INC.

(An Exploration Stage Company)

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2022

TABLE OF CONTENTS

		Page(s)
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021	3
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Deficit for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (unaudited)	7
	Notes to the Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	29
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	29
Item 1A	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	29
Signatures		31

2

PART I. FINANCIAL INFORMATION

APPLIED MINERALS, INC.

(An Exploration Stage Mining Company)

CONSOLIDATED BALANCE SHEETS

	June 30, 2022			December 31, 2021
	(unaudited)
ASSETS
Current Assets
Cash	$	19,706		$	74,253
Accounts receivable		24,425			34,309
Deposits and prepaid expenses		67,634			161,999
Total Current Assets		111,765			270,561
Land		500,000			500,000
Operating lease right-of-use asset		-			28,111
Finance lease right-of-use asset		36,906			42,821
Other Assets
Deposits		297,219			336,328
Total Other Assets		297,219			336,328
TOTAL ASSETS	$	945,890		$	1,177,821
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	3,464,615		$	3,017,454
PIK Note interest accrual		377,609			372,028
Current portion of notes payable		189,491			112,835
Current portion of finance lease liabilities		12,337			11,986
Current portion of operating lease liabilities		-			29,085
Total Current Liabilities		4,044,052			3,543,388
Long-Term Liabilities
PIK Notes payable, net of $472,104 and $681,102 debt discount, respectively		47,924,672			47,004,480
Deferred revenue		1,000,000			1,000,000
Finance lease liabilities		24,569			30,835
Total Long-Term Liabilities		48,949,241			48,035,315
TOTAL LIABILITIES		52,993,293			51,578,703
Stockholders’ Deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, and 164,000 and 262,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		164			262
Common stock, $0.001 par value, 700,000,000 shares authorized, and 285,787,382 and 217,655,150 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (247,569,392 reserved in Treasury)		285,786			217,654
Additional paid-in capital		74,861,487			74,686,581
Accumulated deficit prior to the exploration stage		(20,009,496	)		(20,009,496	)
Accumulated deficit during the exploration stage		(107,185,344	)		(105,295,883	)
Total Stockholders’ Deficit		(52,047,403	)		(50,400,882	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	945,890			1,177,821

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

APPLIED MINERALS, INC.

(An Exploration Stage Mining Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended June 30						For the Six Months Ended June 30
	2022			2021			2022			2021
REVENUES	$	106,105		$	465,493		$	184,150		$	739,165
OPERATING EXPENSES:
Production costs		177,959			418,959			311,295			881,125
Exploration costs		6,543			76,259			250,013			127,849
General and administrative		335,728			411,949			741,106			801,472
Total Operating Expenses		520,230			907,167			1,302,414			1,810,446
Operating Loss		(414,125	)		(441,674	)		(1,118,264	)		(1,071,281	)
OTHER INCOME (EXPENSES):
Interest expense, net (including amortization of deferred financing cost and debt discount)		(480,717	)		(463,402	)		(952,615	)		(927,299	)
Other income, net		121,046			69,883			181,418			317,429
Total Other (Expenses)		(359,671	)		(393,519	)		(771,197	)		(609,870	)
NET LOSS	$	(773,796	)	$	(835,193	)	$	(1,889,461	)	$	(1,681,151	)
Net Loss Per Common Share (Basic and Diluted)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Weighted Average Common Shares Outstanding (Basic and Diluted)		229,964,647			195,105,088			243,688,779			191,693,131

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

APPLIED MINERALS, INC.

(An Exploration Stage Mining Company)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(Unaudited)

	Three Months Ended
	Common Stock Shares		Common Stock Amount		Preferred Stock Shares			Preferred Stock Amount			Additional Paid-in Capital			Accumulated Deficit Prior to Exploration Stage			Accumulated Deficit During Exploration Stage			Total Stockholders’ Deficit
Balance, March 31, 2022		252,563,747	$	252,562		187,000		$	187		$	74,798,477		$	(20,009,496	)	$	(106,411,548	)	$	(51,369,818	)
Shares issued upon conversion of Series B Preferred Stock		33,223,635		33,224		(101,000	)	$	(101	)		(33,123	)		-			-			-
Beneficial conversion feature on Series B Preferred Stock		-		-		-			-			25,947			-			-			25,947
Deemed dividend from beneficial conversion feature on Series B Preferred Stock		-		-		-			-			(25,947	)		-			-			(25,947	)
Shares of Series B Preferred Stock issued to Geneva Roth		-		-		78,000			78			74,922			-			-			75,000
Stock option compensation expense		-		-		-			-			21,211			-			-			21,211
Net Loss		-		-		-			-			-			-			(773,796	)		(773,796	)
Balance, June 30, 2022		285,787,382	$	285,786		164,000		$	164		$	74,861,487		$	(20,009,496	)	$	(107,185,344	)	$	(52,047,403	)
Balance, March 31, 2021		195,105,088	$	195,105		95,000		$	95		$	74,167,266		$	(20,009,496	)	$	(102,858,602	)	$	(48,505,632	)
Shares issued in private placement		-		-		81,136			81			84,919			-			-			85,000
Beneficial conversion feature on Series B Preferred Stock		-		-		-			-			51,874			-			-			51,874
Deemed dividend from beneficial conversion feature on Series B Preferred Stock		-		-		-			-			(51,874	)		-			-			(51,874	)
Stock compensation expense		-		-		-			-			3,943			-			-			3,943
Net Loss		-		-		-			-			-			-			(835,193	)		(835,193	)
Balance, June 30, 2021		195,105,088	$	195,105		176,136		$	176		$	74,256,128		$	(20,009,496	)	$	(103,693,795	)	$	(49,251,882	)

5

	Six Months Ended
	Common Stock Shares		Common Stock Amount		Preferred Stock Shares			Preferred Stock Amount			Additional Paid-in Capital			Accumulated Deficit Prior to Exploration Stage			Accumulated Deficit During Exploration Stage			Total Stockholders’ Deficit
Balance, December 31, 2021		217,655,150	$	217,654		262,000		$	262		$	74,686,581		$	(20,009,496	)	$	(105,295,883	)	$	(50,400,882	)
Shares issued for conversion of Series B Preferred Stock		53,387,788		53,388		(176,000	)		(176	)		(53,212	)		-			-			-
Shares issued as part of liability settlement		4,444,444		4,444		-			-			49,334			-			-			53,778
Issuance of shares for debt issuance cost		300,000		300		-			-			1,440			-			-			1,740
Issuance of shares of common stock for consulting services		10,000,000		10,000		-			-			60,000			-			-			70,000
Beneficial conversion feature on Series B Preferred Stock		-		-		-			-			25,947			-			-			25,947
Deemed dividend from beneficial conversion feature on Series B Preferred Stock		-		-		-			-			(25,947	)		-			-			(25,947	)
Shares of Series B Preferred Stock issued to Geneva Roth		-		-		78,000			78			74,922			-			-			75,000
Stock option compensation expense		-		-		-			-			42,422			-			-			42,422
Net Loss		-		-		-			-			-			-			(1,889,461	)		(1,889,461	)
Balance, June 30, 2022		285,787,382	$	285,786		164,000		$	164		$	74,861,487		$	(20,009,496	)	$	(107,185,344	)	$	(52,047,403	)
Balance, December 31, 2020		183,938,549	$	183,939		128,000		$	128		$	74,008,636		$	(20,009,496	)	$	(102,012,644	)	$	(47,829,437	)
Shares issued for conversion of Series B Preferred Stock		6,167,273		6,167		(128,000	)		(128	)		1,641			-			-			7,680
Shares issued in private placement		-		-		176,136			176			184,824			-			-			185,000
Beneficial conversion of Series B Preferred Stock		-		-		-			-			112,612			-			-			112,612
Deemed dividend from beneficial conversion feature on Series B Preferred Stock		-		-		-			-			(112,612	)		-			-			(112,612	)
Shares issued upon cashless exercise of options		3,836,475		3,836		-			-			(3,836	)		-			-			-
Shares issued for employee bonus		1,162,791		1,163		-			-			56,977			-			-			58,140
Stock option compensation expense		-		-		-			-			7,886			-			-			7,886
Net Loss		-		-		-			-			-			-			(1,681,151	)		(1,681,151	)
Balance, June 30, 2021		195,105,088	$	195,105		176,136		$	176		$	74,256,128		$	(20,009,496	)	$	(103,693,795	)	$	(49,251,882	)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6

APPLIED MINERALS, INC.

(An Exploration Stage Mining Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended
	June 30,
	2022			2021
Cash Flows from Operating Activities:
Net loss	$	(1,889,461	)	$	(1,681,151	)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation of finance lease		5,915			1,874
Amortization of debt discount		2,143			-
Amortization of discount - PIK Notes		208,998			198,304
Accrued interest on PIK Notes		721,659			702,434
Stock issued for settlement liability		53,778			-
Stock based compensation expense		112,422			66,026
Non-cash lease expense		28,111			53,264
Stock issued for interest		-			7,680
Forgiveness of PPP Fund		-			(223,075	)
Change in operating assets and liabilities:
Accounts receivable		9,884			(68,117	)
Deposits and prepaids		133,474			111,118
Operating lease liabilities		(29,085	)		(54,356	)
Financing lease liabilities		(5,915	)		-
Accounts payable and accrued liabilities		442,277			37,736
Net cash (used in) provided by operating activities		(205,800	)		(848,263	)
Cash Flows from Financing Activities:
Payment on finance lease liability		(6,029	)		(2,028	)
Proceeds from notes payable		200,000			-
Proceeds from Paycheck Protection Program loan		-			264,472
Payments on notes payable		(31,777	)		-
Proceeds from private placement		75,000			185,000
Payments on insurance financing		(85,941	)		(99,812	)
Net cash provided by (used in) financing activities		151,253			347,632
Net change in cash		(54,547	)		(500,631	)
Cash at beginning of period		74,253			669,560
Cash at end of period	$	19,706		$	168,929
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,624		$	5,380
Cash paid for income taxes	$	-		$	-
Supplemental disclosure of non-cash financing activity:
Capitalization of ROU asset and finance lease liability	$	-		$	50,573
Boral settlement payable	$	4,844		$	-
Deemed dividend on Series B Preferred Stock due to BCF	$	25,947		$	112,612
Accrued PIK interest paid through issuance of PIK Notes	$	716,078		$	703,260
Stock issued for cashless options exercised	$	1,740		$	3,836
Common stock issued upon conversion of Series B Preferred Stock	$	53,388		$	-

The accompanying notes are an integral part of these unaudited consolidated financial statements.

7

APPLIED MINERALS, INC.

(An Exploration Stage Mining Company)

Notes to the Consolidated Financial Statements

(Unaudited)

NOTE 1– ORGANIZATION AND DESCRIPTION OF BUSINESS

Applied Minerals, Inc. (the “Company” or “Applied Minerals” or “we” or “us”) (OTCQB: AMNL) is the owner of the Dragon Mine located in the Tintic Mining District of the State of Utah from where it produces halloysite clay and iron oxide. The Company markets its halloysite clay under the DRAGONITE trade name. The Company markets its DRAGONITE halloysite clay products into the as an additive into the ceramic, molecular sieve, catalyst, polymer, flame retardant, and coatings markets. The Company regularly sells its halloysite clay products to six customers. Several prospective customers are conducting either commercial-scale trials or field trials for an array of products that use DRAGONITE. The Company believes its DRAGONITE halloysite clay has potential use in lithium-ion battery formulations. In particular, halloysite has been shown to be an effective precursor of porous silicon for use as anode material, a coating to improve the conductivity of separators and an additive to improve the conductivity of solid polymer electrolytes. In June 2021, the Company received a $200,000 U.S. DOE STTR Phase I award to develop a process that produces halloysite-derived porous silicon for use as anode material. In April 2022, the Company applied for $1.15 million U.S. DOE STTR Phase II award to scale up the process developed under the Phase I award. On July 11, 2022, the Company announced that it entered into an agreement to sell the assets related to its iron oxide resource. On August 9, 2022 the sale of the assets related to the Company’s iron oxide resource closed.  

Applied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC under the symbol AMNL.  

Status of the Company for SEC Reporting Purposes

The Company is classified as an “exploration stage” company for purposes of Industry Guide 7 of the U.S. Securities and Exchange Commission (“SEC”).

Under Industry Guide 7, companies engaged in significant mining operations are classified into three categories, referred to as “stages” - exploration, development, and production.

Exploration stage includes all companies that do not have established reserves in accordance with Industry Guide 7. Such companies are deemed to be “in the search for mineral deposits.” Notwithstanding the nature and extent of development-type or production-type activities that have been undertaken or completed, a company cannot be classified as a development or production stage company unless it has established reserves in accordance with Industry Guide 7.

Exploration Agreement

On December 22, 2017, the Company and Continental Mineral Claims, Inc. (“CMC”) entered into an Exploration Agreement with Option to Purchase (“Agreement”). The Company granted to CMC the exclusive right and option to enter upon and conduct mineral exploration activities (the “Exploration License”) for Metallic Minerals on the Company’s Dragon Mine minesite in Utah (the “Mining Claims”).  Metallic Minerals are defined to include minerals with a high specific gravity and metallic luster, such as gold, silver, lead, copper, zinc, molybdenum, titanium, tungsten, uranium, tin, iron, etc., but shall exclude any such Metallic Minerals that are intermingled within any economically-recoverable, non-metallic mineral deposits located at or above an elevation of 5,590 feet above sea level. Non-metallic minerals include clay and iron oxide, the minerals mined by the Company.  The Company believes that all economic recoverable non-metallic mineral deposits are well above 5,590 feet above sea level. The Exploration License is for a period of ten years.

In consideration of the Exploration License CMC paid the Company $350,000 upon the execution of the agreement and paid it $150,000 on the first anniversary of the Exploration License in December 2018. Per the agreement CMC was obligated to pay the Company $250,000 on or before each subsequent anniversary during the Exploration License term following the first anniversary of the Effective Date of the Agreement unless the Exploration License was terminated earlier by CMC by exercising the option or failing to make the required payment for the Exploration License.

On March 25, 2020, the Company and Tintic Copper and Gold, Inc. (CMC’s successor) (“Tintic”) agreed to lower the exercise price of the Option to $1,050,000 and Tintic immediately exercised the Option. The proceeds from the exercise of the Option are presented as Other Income. The Company also provided Tintic with a Right of First Offer, which will expire on December 21, 2027 and can be extended to December 21, 2032 for a payment of $250,000 by Tintic to the Company. 

Upon the exercise of the option, the Company retained the all rights and title to (1) the surface interest (with exception of those rights associated with the Metallic Rights), and (2) all non-metallic minerals (expressly including all industrial minerals including clays and iron oxides).

Upon the exercise of the option the Company retained protections against unreasonable interference of its current and future mining operations by CMC. CMC may not do anything that may, at the Company’s determination, adversely impact the Company’s Mining Operations.  “Mining Operations” shall mean the activities incident to mineral extraction, permitting, and any operations by CMC or the Company relating to the removal of minerals, respectively, that are or may reasonably be conducted on the Mining Claims, including the exploration for, and development, active mining, removing, producing and selling of any minerals, including the Metallic Minerals.  The Agreement states that the parties understand that the Company was willing to enter into the Agreement only if it was assured that CMC would not have any right to unreasonably interfere with the Company’s current mining operations and possible future Mining Operations on the Mining Claims.

8

Impact of COVID–19 Pandemic on Financial Statements

In December 2019, a novel strain of COVID-19 was reported in China. Since then, COVID-19 has spread globally, to include Canada, the United States and several European countries. The spread of COVID-19 from China to other countries has resulted in the World Health Organization (WHO) declaring the outbreak of COVID-19 as a “pandemic,” or a worldwide spread of a new disease, on March 11, 2020. Since then, many countries around the world imposed quarantines and restrictions on travel and mass gatherings to slow the spread of the virus and have closed non-essential businesses.

The effects of the COVID-19 restrictions adversely affected our business in 2020 and 2021 as certain customers delayed purchases of our DRAGONITE halloysite clay products. As countries, including the U.S., begin to ease restrictions, some of our customers have begun to resume their previously planned purchases of our DRAGONITE halloysite clay products.

NOTE 2 – GOING CONCERN AND BASIS OF PRESENTATION

The Company has suffered recurring losses from operations and currently a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management believes that in order for the Company to meet its obligations arising from normal business operations through August 22, 2023 that the Company may be required (i) to raise additional capital either in the form of a private placement of common stock or debt and/or (ii) generate additional sales of its products that will generate sufficient operating profit and cash flows to fund operations.  Without additional capital or additional sales of its products, the Company’s ability to continue to operate may be limited.

Based on the Company’s current cash usage expectations, management believes it may not have sufficient liquidity to fund its operations through August 22, 2023. Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate additional product sales. Collectively these factors raise substantial doubt regarding the Company’s ability to continue as going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.

NOTE 3 – BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements of Applied Minerals, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, these interim unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature, which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with the financial statements and related disclosures for the year ended December 31, 2021, included in the Annual Report of Applied Minerals, Inc. on Form 10-K filed with the SEC on April 18, 2022.

The accompanying interim unaudited consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes. As of August 20, 2022, the Company’s significant accounting policies and estimates remain unchanged from those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 

9

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Consolidated Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of June 30, 2022, the extent to which the effects of the COVID-19 pandemic may impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions still require increased judgment and carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic, our estimates may materially change in future periods.

Concentration of Credit Risk

Cash balances, accounts receivable and derivative financial instruments are financial instruments potentially subject to credit risk. Cash and cash equivalents are maintained in bank deposit accounts, which, at times, may exceed the federally insured limits. Management periodically reviews and assesses the financial condition of the banks to mitigate the risk of loss.

For the six months ended June 30, 2022 and 2021, revenues from the Company’s largest customer accounted for 21% and 58% of total revenues, respectively. As of June 30, 2022 and 2021, amounts owed from these customers comprised 0% and 18% of accounts receivable, respectively.

Receivables

Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts.

Management evaluates the collectability of receivable account balances to determine the allowance, if any. Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance. Receivable balances are written off when management determines that the balance is uncollectable. No allowance was required at June 30, 2022 and December 31, 2021.

Property and Equipment

Property and equipment are carried at cost net of accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

	Estimated
	Useful Life (years)
Building and Building Improvements		5 – 40
Mining equipment		2 – 7
Office and shop furniture and equipment		3 – 7
Vehicles		5

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount. If this comparison indicates that there is impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. The Company has determined that there was no impairment of its long-lived assets as of June 30, 2022 and 2021.

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Revenue Recognition

Revenue includes sales of halloysite clay and iron oxide and is recognized when title passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract. Product pricing is determined based on contractual arrangements with the Company’s customers. The Company’s revenue recognition policies are established in accordance with the Revenue Recognition topics of ASC 606, and accordingly, revenue is recognized when control of the promised goods or services is transferred to our clients, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. The Company recognizes revenue at a point in time based on management’s evaluation of when performance obligations under the terms of a contract with the customer are satisfied and control of the product has been transferred to the customer. In most situations, transfer of control is considered complete when the products have been shipped to the customer.

Mining Exploration and Development Costs

Land and mining property are carried at cost. The Company expenses prospecting and mining exploration costs. At the point when a property is determined to have proven and probable reserves, subsequent development costs will be capitalized and will be charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized.

Income taxes

The Company uses an asset and liability approach which results in the recognition of deferred tax liabilities and assets for the expected future tax consequences or benefits of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as well as operating loss and tax credit carry forwards, using enacted tax rates in effect in the years in which the differences are expected to reverse.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A full valuation allowance has been provided for the Company’s net deferred tax assets as it is more likely than not that they will not be realized.

Authoritative guidance provides that the tax effects from an uncertain tax position taken or expected to be taken in a tax return can be recognized in our financial statements only if the position is more likely than not of being sustained on audit based on the technical merits of the position. As of June 30, 2022, no benefit from uncertain tax positions was recognized in our financial statements. The Company has elected to classify interest and/or penalties related to income tax matters in income tax expense.

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Stock Options and Warrants

The Company follows ASC 718 (Stock Compensation) and ASU 2018-07 (Compensation – Stock Compensation), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company instituted a formal long-term and short-term incentive plan on November 20, 2012, which was approved by its shareholders. Prior to that date, we did not have a formal equity plan, but all equity grants, including stock options and warrants, were approved by our Board of Directors. We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Beginning in the quarter ended June 30, 2013, the Company began using the simplified method to determine the expected term for any options granted because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The Company previously utilized the contractual term as the expected term.

Environmental Matters

Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate. Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed. Liabilities are recognized when environmental assessments indicate that remediation efforts are probable, and the costs can be reasonably estimated.

Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors and include estimates of associated legal costs. These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations. Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology, and inflation. Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability.

The Company has posted a cash bond in the amount of $297,000 required by the Utah Department of Oil, Gas and Minerals to cover estimated reclamation costs related the Company large mining permit for its Dragon Mine property. 

Note Payable - Convertible

The Company follows ASC 480-10, Distinguishing Liabilities from Equity (“ASC 480-10”) in its evaluation of the accounting for a certain instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in interest expense in the accompanying Consolidated Statements of Operations.

Recent Issued Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 for its fiscal year ending December 31, 2021.

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NOTE 4 – LEASES

Finance Lease

On May 14, 2021, the Company entered into a 4-year financing lease agreement for laboratory equipment. The base rent payment is approximately $1,107 per month.

Supplemental cash flow information related to leases:	Three months ended June 30, 2022			Six months ended June 30, 2022
Finance cash flows from finance lease	$	(3,161	)	$	(5,915	)
Operating cash flows from finance lease	$	3,161		$	5,915

Supplemental balance sheet information related to leases:	As of June 30, 2022
Finance lease Right-of-use assets	$	36,906
Current portion of finance lease liability	$	12,337
Long-term finance lease liability		24,569
Total finance lease liability	$	36,906
Weighted average remaining operating lease term		2.75 years
Weighted average discount rate		6	%

The following table summarizes the maturity of lease liability under finance lease as

of June 30, 2022:

2022 (remaining six months)	$	7,049
2023		14,099
2024		14,099
2025		4,700
Total lease payments		39,947
Less: imputed interest		(3,041	)
Total lease liabilities	$	36,906

NOTE 5 – DEPOSIT

The following is a summary of deposit:

	June 30, 2022		December 31, 2021
Cash Bond (Mine Permit deposit)	$	297,219	$	297,160
Office Lease Security Deposit		-		39,168
Total	$	297,219	$	336,328

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NOTE 6 - NOTES PAYABLE

Notes payable at June 30, 2022 and December 31, 2021 consist of the following:

	June 30, 2022			December 31, 2021
Note payable to insurance companies, payable $1,780 and $12,804 monthly, (a)	$	26,894		$	112,835
Promissory note (b)	$	62,546		$	-
Loan payable (c)	$	100,051		$
	$	189,491		$	112,835
Less: Current Portion	$	(189,491	)	$	(112,835	)
Notes Payable, Long-Term Portion	$	-		$	-

(a) In October 2021, the Company entered into two notes payable with interest rates of 4.04% and 6.29% with an insurance company for liability insurance, payable in 10 monthly installment payments, which started in November 2021.

(b) In January 2022, the Company entered into a promissory note agreement for $90,000, including an original issue discount of 16.7% resulting in net proceeds of $75,000. The annual interest rate is 10%. Principal and interest is due to the lender in seven equal monthly payments of $14,142.50 commencing on June 24, 2022 until the promissory note is paid in full no later than January 24, 2023. In the event of default, the lender will have the right to convert the outstanding principal and interest into stock at a price equal to ninety (90) percent of the lowest trading price over a ten (10) day trading period immediately prior to the date of conversion. As part of entering into the promissory note agreement, the Company issued 300,000 restricted shares of common stock under the lender.

(c) In March 2022, the Company entered into a loan payable with a lender for $125,000. Payment of the loan includes one installment of $1,215.19 followed by seventy-nine (79) weekly installments of $2,025.32 totalling $165,000. The lender has been provided a security interest in certain inventory and equipment. Excluded is the Company’s Alpine mill and related equipment.

During the six months ended June 30, 2022 and 2021, the Company's interest payments totaled $4,624 and $5,380, respectively.

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NOTE 7 – CONVERTIBLE DEBT

PIK Notes

The Company raised $23 million of financing through the issuance of two series of Paid-In-Kind (“PIK”)-Election Convertible Notes in 2013 (“Series 2023 Notes”) and 2014 (“Series A Notes”). The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of the Series 2023 Notes included among other things: (i) a maturity of August 1, 2023, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $1.40, adjusted downward based on an anti-dilution provision. On December 14, 2017, an amendment agreement, entered into between the Company and the holders of the Series A Notes and Series 2023 Notes, went into effect. The agreement resulted in changes to certain terms of the Series A and Series 2023 Notes. The key terms of the Series A and Series 2023 Notes, as amended, are highlighted in the table below:

Key Terms	Series 2023 Notes	Series A Notes
Inception Date	08/01/2013	11/03/2014
Cash Received	$10,500,000	$12,500,000
Principal (Initial Liability)	$10,500,000	$19,848,486
Maturity (Term)	Matures on August 1, 2023, but convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;	Matures on May 1, 2023 but extends to August 1, 2023 if the Series 2023 Notes are still outstanding. Convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;
Exercise Price	$0.47, as adjusted downward based on anti-dilution provisions/down-round protection	$0.26, as adjusted downward based on anti-dilution provisions/down-round protection;
Stated Interest	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;

In April 2019 the Company entered into a settlement agreement with the holders of the Series A Notes and Series 2023 Notes (the “PIK Notes”). Per the terms of the agreement the Company will pay to holders of PIK Notes on a pro rata basis the following percentages of revenue booked during a fiscal quarter: (a) three percent (3%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter; or (b) five percent (5%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million the last day of the fiscal quarter; or (c) twelve percent (12%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million.

As of June 30, 2022, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	18,024,680	$	30,372,096		$	48,396,776
Less: Discount		-		(472,104	)		(472,104	)
PIK Note Payable, Net	$	18,024,680	$	29,899,992		$	47,924,672

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As of December 31, 2021, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	17,759,822	$	29,925,760		$	47,685,582
Less: Discount		-		(681,102	)		(681,102	)
PIK Note Payable, Net	$	17,759,822	$	29,244,658		$	47,004,480

Series A Notes (Amended)

On November 3, 2014 (“Issue Date”), the Company issued, in a private placement pursuant to investment agreements, $19,848,486 principal amount of 10% PIK-Election Convertible Notes due 2018 ("Series A Notes") in exchange for $12,500,000 in cash and the cancellation of previously issued warrants held by one investor.

The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of both the Series A Notes and Series 2023 Notes can be as exhibits to Forms 8-K filed on November 5, 2014.

Below are key amended terms of the Series A Notes:

● Maturity: May 1, 2023.

● Exercise Price: $0.40 per share and will be adjusted from time to time pursuant anti-dilution provisions.

● Stated Interest: 10% payable semi-annually in arrears through December 14, 2017, 3% payable semi-annually in arrears thereafter.

● Liquidated Damages: The Company is required to pay the noteholders 1% of the principal amount of the Series A Notes if a Registration statement is not filed and effective within 90 days of the inception date (and further damages for every 30 days thereafter).

● The number of shares issuable under the Notes may be affected by the anti-dilution provisions of the Notes. The antidilution provisions adjust the Exercise Price of the Notes in the event of stock dividends and splits, issuance below the market price of the common stock, issuances below the conversion price of the Notes, pro rata distribution of assets, rights plans, tender offers, and exchange offers.

The entire principal amount of the Series A Notes and accrued interest thereon shall be mandatorily converted into shares of the Company’s common stock if (i) the Volume Weighted Average Price (“VWAP”) of the thirty (30) preceding trading days is at or greater than $1.00 or the VWAP of the ten (10) preceding trading days is at or greater than $1.40; (ii) the closing market price of the shares of the Company’s common stock is at or greater than $1.00; (iii) all outstanding amounts under each Series 2023 Note or replacement financing, if any, shall have been converted into shares of the Company’s common stock pursuant to the terms of such Series 2023 Note or the replacement financing, if any, on or prior to the date on which a notice of mandatory conversion is received; and (iv) either (x) a registration statement is effective and available for the resale of all of the shares into which the Series A Notes convert on the date on which the Series A notes are mandatorily converted and each of the five (5) trading days prior to the date of mandatory conversion and on the date of mandatory conversion the holders of the Series A Notes are not restricted from selling or distributing any shares into which the Series A Notes convert pursuant to the provisions of the Registration Rights Agreement or (y) the holders Series A Notes may sell all such shares into which the Series A Notes convert immediately under Rule 144 under the Securities Act.

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The Series A Notes were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability, or any net investment in a foreign operation. In addition to the customary anti-dilution provisions the notes contain a down-round provision whereby the conversion price would be adjusted downward in the event that additional shares of the Company’s common stock or securities exercisable, convertible or exchangeable for the Company’s common stock were issued for cash consideration (e.g. a capital raise) at a price less than the conversion price. Therefore, the estimated fair value of the conversion feature of $9,212,285 (based on observable inputs using a Monte Carlo model) was bifurcated from the Series A Notes and accounted for as a separate derivative liability, which resulted in a corresponding amount of debt discount on the Series A Notes. In addition, an additional debt discount of $7,348,486 was recorded as a result of the difference between the $12,500,000 of cash received and the $19,848,486 of principal on the Series A Notes. This combined debt discount of $16,560,771 is being amortized using the effective interest method over the 9-year term of the Notes as Interest Expense, while the PIK Note Derivative is carried at fair value (using a Monte Carlo model) until the Notes are converted or otherwise extinguished. Any changes in fair value are recognized in earnings.

During the six months ended June 30, 2022, the Company issued additional Series A Notes of $449,384 in lieu of cash interest payments. The carrying value of the Series A Notes payable as of June 30, 2022 was $29,899,992.

The amortized debt discount expensed during the three months ended June 30, 2022 was $105,186.

As of June 30, 2022, the Company was in compliance with the covenants of the Series A Notes.

As of June 30, 2022, Geoffrey Scott, a director of the Company owned $4,642,137 of principal of the Series A Notes.

Series 2023 Notes (Amended)

In August 2013, the Company received $10,500,000 of financing through the private placement of 10% mandatory convertible Notes due 2023 ("Series 2023 Notes"). The principal amount of the Notes is due on maturity. The Company can elect to pay semi-annual interest on the Series 2023 Notes with additional PIK Notes containing the same terms as the Series 2023 Notes, except interest will accrue from issuance of such notes. The Company can also elect to pay interest in cash.

The Series 2023 Notes convert into the Company’s common stock at a conversion price of $0.59 per share, which is subject to customary anti-dilution adjustments; the holders may convert the Series 2023 Notes at any time. The Series 2023 Notes are mandatorily convertible after one year when the weighted average trading price of a share of the common stock for the preceding ten trading days is in excess of the conversion price. The Series 2023 Notes contain customary representations and warranties and several covenants. The proceeds are being used for general corporate purposes. No broker was used and no commission was paid in connection with the sale of the Series 2023 Notes.

These Series 2023 Notes were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. In addition to the customary anti-dilution provisions the notes contain a down-round provision whereby the conversion price would be adjusted downward in the event that additional shares of the Company’s common stock or securities exercisable, convertible or exchangeable for the Company’s common stock were issued for cash consideration (e.g. a capital raise) at a price less than the conversion price. Therefore, the estimated fair value of the conversion feature of $2,055,000 (based on observable inputs using a Monte Carlo model) was bifurcated from the Series 2023 Notes and accounted for as a separate derivative liability, which resulted in a corresponding amount of debt discount on the Series 2023 Notes. The debt discount is being amortized using the effective interest method over the 10-year term of the Series 2023 Notes as Interest Expense, while the PIK Note Derivative is carried at fair value (using a Monte Carlo model) until the Series 2023 Notes are converted or otherwise extinguished. Any changes in fair value are recognized in earnings.

During the six months ended June 30, 2022, the Company issued additional PIK Notes of $266,694 in lieu of cash interest payments. The carrying value of the Series 2023 Notes Payable was $18,024,680 as June 30, 2022. 

As of June 30, 2022, the Company was in compliance with the covenants of the Series 2023 Notes.

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NOTE 8 – STOCKHOLDERS’ EQUITY

Preferred Stock

The Company is authorized to issue 10,000,000 shares of noncumulative, non-voting, nonconvertible preferred stock, $0.001 par value per share.

At June 30, 2022 and December 31, 2021, 164,000 and 262,000 shares of Series B Preferred Stock were issued and outstanding, respectively.

2022

On May 3, 2022, 78,000 shares of Series B Preferred Stock were issued at a stated price of $1.00 per share for cash proceeds of $75,000, net of $3,000 in legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $49,869 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

2021

On February 17, 2021, 95,000 shares of Series B Preferred Stock were issued at a stated price of $1.084 per share for cash proceeds of $100,000, net of $3,000 legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $60,738 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

On May 24, 2021, 81,136 shares of Series B Preferred Stock were issued at a stated price of $1.084 per share for cash proceeds of $85,000, net of $3,000 in legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $51,874 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

Each share of Series B Preferred Shares will carry an annual dividend in the amount of twelve percent (12%) of the Stated Value (the “Divided Rate”), which shall be cumulative and compounded daily, payable solely upon redemption, liquidation or conversion. The Company has the right to redeem all or any portion of the shares within 180 days following the issuance day.

The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the Issuance Date, to convert all or any part of the outstanding Series B Preferred Stock into fully paid and non-assessable shares of Common Stock. The conversion price (the “Conversion Price”) shall equal the 61% multiplied by the Market Price (representing a discount rate of 39%). “Market Price” means the lowest Trading Price for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.

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Common Stock 

The Company is authorized to issue 700,000,000 shares of common stock with a $0.001 par value per share.

At June 30, 2022 and December 31, 2021, 285,787,382 and 217,655,150 shares were issued and outstanding, respectively.

2022

During the six months ended June 30, 2022, (i) 20,164,153 shares of common stock were issued upon the conversion of 75,000 shares of Series B Preferred Stock issued in August 2021, (ii) 10,000,000 shares of common stock were issued as in conjunction with entering into a consulting agreement with an investor relations firm, (iii) 4,444,444 shares were issued to settle certain liabilities, (iv) 300,000 shares of common stock were issued as debt issuance cost, (v) 9,275,000 shares of common stock were issued upon the conversion of 35,000 shares of Series B Preferred Stock issued in August 2021, and (vi) 23,948,635 shares of common stock issued upon the conversion of 66,000 shares of Series B Preferred Stock issued in September 2021.

2021

During the six months ended June 30, 2021, (i) 6,167,273 shares of common stock were issued upon the conversion of 128,000 shares of Series B Preferred Stock issued in August 2020, (ii) 3,836,475 shares of common stock were issued upon the cashless exercise of options to purchase 9,528,689 shares of common stock, and (iii) 1,162,791 shares of common stock were issued to an employee in lieu of a bonus payment of $58,140.

NOTE 9 – OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK

Outstanding Stock Warrants

A summary of the status and changes of the warrants issued for the six months ended June 30, 2022:

	Shares Issuable
	upon Exercise of		Weighted Average
	Outstanding Warrants		Exercise Price
Outstanding at December 31, 2021		11,000,000	$	0.10
Issued		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at June 30, 2022		11,000,000	$	0.10

At June 30, 2022, the intrinsic value of the outstanding warrants was $0.

A summary of the status of the warrants outstanding and exercisable at June 30, 2022 is presented below:

			Warrants Outstanding and Exercisable
			Shares Issuable	Weighted Average
			upon Exercise of	Remaining		Weighted Average
Exercise Price			Outstanding Warrants	Contractual Life (years)		Exercise Price
	$	0.10	11,000,000	0.42	$	0.10
			11,000,000	0.42	$	0.10

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Outstanding Stock Options

On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based. Under the LTIP, 8,900,000 shares are authorized for issuance. The STIP does not refer to a particular number of shares under the LTIP, but would use the shares authorized in the LTIP for issuance under the STIP. The CEO, the CFO, and named executive officers, and directors, among others are eligible to participate in the LTIP and STIP. Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.

On December 7, 2016, the stockholders of the Company approved the 2016 Incentive Plan. The purpose of the 2016 Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants, and non-employee directors incentive awards in order to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders. The aggregate number of shares of Common Stock that may be issued or used for reference purposes under the 2016 Incentive Plan or with respect to which awards may be granted may not exceed 15,000,000 shares, which may be either (i) authorized and unissued Common Stock or (ii) Common Stock held in or acquired for the treasury of the Company. 

The Compensation Committee of the Company Board of Directors has full authority to administer and interpret the 2016 Incentive Plan, to grant awards under the 2016 Incentive Plan, to determine the persons to whom awards will be granted, to determine the types of awards to be granted, to determine the terms and conditions of each award, to determine the number of shares of Common Stock to be covered by each award and to make all other determinations in connection with the 2016 Incentive Plan and the awards thereunder as the Committee, in its sole discretion, deems necessary or desirable.

The fair value of each of the Company's stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on an average of historical volatility of the Company's common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury Bond on the date the award is granted with a maturity equal to the expected term of the award. The Company did not grant any stock option awards during the six months ended June 30, 2022.

A summary of the status and changes of the options granted under stock option plans and other agreements during the six months ended June 30, 2022:

	Shares Issued Upon Exercise of Options			Weighted Average Exercise Price
Outstanding at December 31, 2021		52,790,845		$	0.25
Granted		-			-
Exercised		-			-
Forfeited		(3,854,653	)		0.79
Outstanding at June 30, 2022		48,936,192		$	0.21

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A summary of the status of the options outstanding at June 30, 2022 is presented below:

	Options Outstanding						Options Exercisable
Range of per share exercise price	Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price		Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price
$0.03 - $0.08		38,409,881		4.91	$	0.05		38,016,131		4.92	$	0.05
$0.10 - $0.84		6,784,251		1.57		0.34		6,784,251		1.57		0.34
$1.10 - $1.66		3,742,060		0.51		1.57		3,742,060		0.51		1.57
		48,936,192		4.11	$	0.20		48,542,442		4.11	$	0.20

Compensation expense of $42,422 and $7,886 was recognized for the vesting of options during the six months ended June 30, 2022 and 2021, respectively. The aggregate intrinsic value of the outstanding options at June 30, 2022 was $0. At June 30, 2022, $5,421 of unamortized compensation expense for time-based unvested options will be recognized over the next 0.06 years on a weighted average basis.

On August 18, 2017, the Company’s management was granted performance-based options to purchase 27.5 million shares of the Company’s common stock at $0.06 per share. The options expire on August 18, 2027. On November 1, 2017, the first fifty percent (50%) of the performance-based options vested as management was able to (i) close the sale of an aggregate of $600,000 of units (consisting of a share of common stock of the Company and a warrant to buy 0.25 of a share of common stock of the Company) at $0.04 per unit and (ii) establish toll processing arrangements with two toll processors of halloysite that, in management’s good faith belief, can process halloysite to the Company’s specifications. An additional twenty-five percent (25%) of the performance-based options vested on January 18, 2018 when management generated $900,000 of additional cash proceeds through (i) the sale of common stock and (ii) the licensing of a right to explore the Dragon Mine property for certain precious metals.

The vesting of the remaining 8.3%, 8.3% and 8.4% of the performance-based options was scheduled to occur when (i) EBITDA is positive over a twelve-month period, (ii) EBITDA is at or greater than $2 million over a twelve-month period and (iii) EBITDA is at or greater than $4 million over a twelve-month period, respectively. Of the 27.5 million performance options granted to management in August 2017, approximately 14.3 million were outstanding at March 31, 2022. The reduction was due to the forfeiture of options to purchase 0.4 million shares of common stock and the exercise of options to purchase approximately 9.5 million shares of common stock during the three months ended March 31, 2021. In July, 2021, the board accelerated the vesting of 1,195,138 options granted to Christopher Carney in August, 2017 and accelerated the vesting of 333,333 options granted in March 2019 to Sharad Mathur, former CTO.

In July 2021 the board approved a grant to management of options to purchase 5.7 million shares of common stock at $0.03 per share. The options have a term of five years. Fifty percent (50%) of the grant vested in July 2021 and the remainder vests in equal monthly amounts through June 2022. In July 2021 the board approved a grant to the directors and a consultant of options to purchase 3.75 million shares of common stock at $0.03 per share. The options have a term of five years. Fifty percent (50%) of the grant vested in July 2021 and the remainder vests in equal monthly amounts through June 2022. The fair value of the options granted in July on the grant date using the Black Scholes model was $169,690. As of June 30, 2022, the Company had $5,421 of unamortized compensation expense.

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NOTE 11 - PER SHARE DATA

The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the year. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents that would arise from the exercise of stock options and warrants outstanding under the treasury method and the average market price per share during the year as well as the conversion of notes.

At June 30, 2022, the weighted average shares outstanding excluded options to purchase 48,936,192 shares of common stock of the Company, warrants to purchase 11,000,000 shares of common stock of the Company and 156,407,336 shares of common stock of the Company issuable upon the conversion of Series A Notes and Series 2023 Notes because their effect would be anti-dilutive.

At December 31, 2021, the weighted average shares outstanding excluded options to purchase 52,790,845 shares of common stock of the Company, warrants to purchase 11,000,000 shares of common stock of the Company and 124,437,208 shares of common stock of the Company issuable upon the conversion of Series A Notes and Series 2023 Notes because their effect would be anti-dilutive.

NOTE 12 – SUBSEQUENT EVENTS

On June 14, 2022, a former contractor of the Company filed a mining services lien on the Dragon Mine property for an amount of $177,777.78 for labor, services and equipment furnished under a Mining Services Agreement entered into between the Company and the contractor on August 1, 2021. On March 31, 2022, prior to the filing of the lien, the Company had entered into a Settlement Letter with the former contractor for an amount equal to $200,000. Under the terms of the Settlement Letter, the Company agreed to (i) make ten consecutive monthly cash payments of $10,000 to the former contractor beginning in April 2022 and (ii) issued 4,444,444 restricted shares of common stock to the former contractor. If the weighted average trading price of the shares of the Company’s common stock over the five trading days immediately preceding October 1, 2022 (“WATP”) was less than $0.0225 per share, the Company agreed, at its option, to (a) issue to the former contractor a number of shares of common stock equal to ((4,444,444 x (0.0225 – WATP)) / (0.9 x WATP)) or (b) make a cash payment to the former contractor equal to ((4,444,444 x (0.0225 – WATP)). As of June 14, 2022, the Company had made $61,379 in cash payments to the former contractor. On July 27, 2022, the Company entered into a Lien Settlement Agreement with the former contractor. Under the terms of the Lien Settlement Agreement, in exchange for a cash payment of $49,731.90 and the issuance of an additional 17,777,777 shares of common stock, the former contractor agreed to file a release of the mining services lien on the Dragon Mine property. Payment of the Lien Settlement Amount by the Company will also deem the Settlement Letter null and void. On August 15, 2022, the Company received a Notice of Release of Lean from Provo Mining indicating Provo Mining has received the payment stipulated on the Lien Settlement Agreement and the lien placed on the Company's listed assets have been released.

Between July 6, 2022 and July 27, 2022, the Company issued 43,409,524 shares of common stock upon the conversion of the 86,000 shares of Series B Preferred Stock sold by the Company in December 2021. 

On August 9, 2022 the Company closed on the sale of the rights to its iron oxide resource, 20 million shares of common stock, its Alpine Mill building, and related milling equipment. In exchange for $300,000, less a previously paid down payment of $120,000 and $20,000 of reimbursable legal expenses, the Company sold to BMI Minerals Company the rights to its iron oxide resource and 20 million restricted shares of common stock of the Company. In exchange for $1,700,000, the Company sold to Brady McCasland, Inc. its Alpine Mill building and related iron milling equipment. In conjunction with the sale of the Alpine Mill building the Company entered into (i) a ground lease with a term of 100 years, (ii) a Mining Operations Agreement and a (iii) Milling Operations Agreement.

On August 9, 2022, which coincided with the closing of the sale of (i) the rights to the Company’s iron oxide resource and (ii) its Alpine Mill building, the directors forfeited $1,630,811 of accrued but unpaid and two directors forfeited approximately $226,000 of accrued but unpaid compensation.

On August 6, 2022, the Company obtained waivers related to the negative covenants attached to its Series 2023 and Series A PIK Notes which restrict certain activities, in this case its Iron Sale, Mill Sale, Mining Operation, and Milling Operation agreements with BMI and BMC. MB obtained the waivers and noted the majority holders approved to waive the breach of the covenant in exchange for payments of: $244,500 to Samlyn Offshore Master Fund, Ltd., $130,500 to Samlyn Onshore Partners, LP, $250,000 to M. Kingdon Offshore Master Fund, LP, and $125,000 to Berylson Master Fund

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ITEM 2     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on our current expectations, assumptions, estimates and projections about our business and our industry. Words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may," and other similar expressions identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.

Overview

Applied Minerals, Inc. is focused primarily on (i) the development, marketing and sale of halloysite clay-based DRAGONITE™ line of products for use in advanced applications such as, but not limited to, reinforcement additives for polymer composites, flame retardant additives for polymers, catalysts, controlled release carriers for paints and coatings, strength reinforcement additives for cement, concrete, mortars and grouts, advanced ceramics, rheology additives for drilling fluids, environmental remediation media, and carriers of agricultural agents and (ii) the development, marketing and sale of our AMIRON™ line of iron oxide products for pigmentary and technical applications. Halloysite is an aluminosilicate with a tubular structure that provides functionality for a number of applications. Iron oxides are inorganic compounds that are widely used as pigments in paints, coatings and colored concrete.

The Company owns the Dragon Mine, which has significant deposits of high-quality halloysite clay and iron oxide. The 267-acre property is located in southwestern Utah and its resource was mined for halloysite on a large-scale, commercial basis between 1949 and 1976 for use as a petroleum cracking catalyst. The mine was idle until 2001 when the Company leased it to initially develop its halloysite resource for advanced, high-value applications. We purchased 100% of the property in 2005. After further geological characterization of the mine, the Company identified a high-purity, natural iron oxide resource that it has commercialized to supply certain pigmentary and technical markets.

The Company has a mineral processing plant with a capacity of up to 45,000 tons per annum for certain applications. The Company has a smaller processing facility with a capacity of 5,000 – 10,000 tons per annum that is currently dedicated to its halloysite resource. The Company believes it can increase its halloysite production capacity to meet an increase in demand through (i) an expansion of our on-site production capacity through a relatively modest capital investment and (ii) the use of a manufacturing tolling agreement.

The Company currently sells its DRAGONITE product as functional additive for advanced molecular sieves, as a nucleating agent for injection molding applications and as a binder for ceramic applications. For a number of markets mentioned above, the Company is currently working with a number of customers, which are in the latter stages of commercializing new and existing products that will utilize DRAGONITE as a functional additive.

Applied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC market under the symbol AMNL.

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Critical Accounting Policies and Estimates

A complete discussion of our critical accounting policies and estimates is included in our Form 10-K for the year ended December 31, 2021. There have been no material changes in our critical accounting policies and estimates during the six-month period ended June 30, 2022 compared to the disclosures on Form 10-K for the year ended December 31, 2021. 

Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021

Results of Operations

The following sets forth, for the periods indicated, certain components of our operating earnings, including such data stated as percentage of revenues:

	Three Months Ended June 30,						Variance
	2022			2021			$			%
REVENUES	$	106,105		$	465,493		$	(359,388	)		(77	)%
OPERATING EXPENSES:
Production costs		177,959			418,959			(241,000	)		(58	)%
Exploration costs		6,543			76,259			(69,716	)		(91	)%
General and administrative		335,728			411,949			(76,221	)		(19	)%
Total Operating Expenses		520,230			907,167			(386,937	)		(43	)%
Operating Loss		(414,125	)		(441,674	)		(27,549	)		(6	)%
OTHER (EXPENSE) INCOME:
Interest expense, net (including amortization of deferred financing cost and debt discount)		(480,717	)		(463,402	)		17,315			4	%
Other income, net		121,046			69,883			51,163			73	%
Total Other (Expense)		(359,671	)		(393,519	)		(33,848	)		(9	)%
NET LOSS	$	(773,796	)	$	(835,193	)	$	(61,397	)		(7	)%

Revenue for the three months ended June 30, 2022 totaled $106,105, a decrease of $359,388 or 77%, compared to the same period in 2021. The decrease was driven primarily by a $277,297 net decline in sales of AMIRON iron oxide and a net decline of $127,700 in sales of DRAGONITE halloysite clay sales.

Sales of AMIRON iron oxide during the period totaled $17,230, a decrease of 94% when compared to the same period in 2021. The decline was in large part due the expiration in December 2021 of a supply agreement with a producer of cement. Sales of DRAGONITE during the period totaled $88,920, a decline of $53%. The decline was driven primarily by the absence of purchases for field trials by certain customers that occurred during the same period in 2021. A number of those field trials are still in process.

Operating expenses for the three months ended June 30, 2022 totaled $520,230, a reduction of $386,937, or 43%, compared to the same period in 2021. The reduction was driven by a $241,000, or 58%, decrease in production costs, a 69,716, or 91%, decrease in exploration costs and a 76,221, or 19%, decrease in general and administrative expense.

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Production costs include those operating expenses which management believes are directly related to the mining and processing of the Company’s iron oxide and halloysite minerals, which result in the production of its AMIRON and DRAGONITE products for commercial sale. Production costs include, but are not limited to, wages and benefits of employees who mine material and who work in the Company’s milling operations, energy costs associated with the operation of the Company’s two mills, the cost of mining and milling supplies and the cost of the maintenance and repair of the Company’s mining and milling equipment. Wages and energy are the two largest components of the Company’s production costs.  

Production costs incurred during the three months ended June 30, 2022 were $177,959, a decrease of $241,000, or 58%, compared to the same period in 2021. The decrease was driven primarily by a reduction in contract labor, wage and mining materials related expenses associated with the expiration in December 2021 of a contract to supply iron to a producer of cement. Production expense for the three months ended June 30, 2022 include a charge totaling $39,556, related to an adjustment of the stock component of a settlement entered into with a contract miner in March 2022.

Exploration costs include operating expenses incurred at the Dragon Mine that are not directly related to production activities. Exploration costs incurred during the three months ended June 30, 2022 were $6,543, a decrease of $69,716, or 91%, compared to the same period in 2021. The decrease was due primarily to a reduction of $27,683 in wages and workers’ compensation expense, related to the elimination of non-mining related workers and the reclassification of certain workers’ compensation costs, a decline of $14,957 in ground support expense, related to certain mine exploration activities, and the absence of $7,000 in consulting fees associated with works related to the Company’s lithium-ion battery project.

General and administrative expenses incurred during the three months ended June 30, 2022 totaled $335,728, a $76,221, or 19%, decline when compared to the same period in 2021. The decline was driven primarily by a $72,945 decline in corporate wage and wage-related benefits expense. General and administrative expense incurred during the three months ended June 30, 2022 included (i) compensation expense for an employee who resigned in April 2022 and (ii) $127,500 of directors’ fees, which the Company expects to be reduced significantly in subsequent quarters upon the expected resignations of three directors.  

Operating loss incurred during the three months ended June 30, 2022 was $414,125, a $27,549, or 6%, decrease when compared to the same period in 2021. The decline was driven primarily by a $404,946, or 45%, decline in operating expenses, partially offset by a decline of $359,388, or 77%, in revenue when compared to the same period in 2021.

Total other expense was $359,671 for the three months ended June 30, 2022 compared to $393,513 in same period in 2021. The $33,848 decline was due primarily to a $51,017 increase in other income, related to the sale of obsolete equipment and the reimburse of expenses associated with the DOE STTR grants awarded to the Company in June 2021, partially offset by a $17,315 increase in PIK Note interest expense..

Net loss for the three-month period ending June 30, 2022 was $773,796, a decline of $61,397, or 7%, when compared to the same period in 2021. The decrease was primarily driven by a $27,549 decline in operating loss and a $33,848 decrease in total other expense.

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Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

Results of Operations

The following sets forth, for the periods indicated, certain components of our operating earnings, including such data stated as percentage of revenues:

	Six Months Ended June 30,						Variance
	2022			2021			$			%
REVENUES	$	184,150		$	739,165		$	(555,015	)		(75	)%
OPERATING EXPENSES:
Production costs		311,295			881,125			(569,830	)		(65	)%
Exploration costs		250,013			127,849			122,164			96	%
General and administrative		741,106			801,472			(60,366	)		(8	)%
Total Operating Expenses		1,302,414			1,810,446			(508,032	)		(28	)%
Operating Loss		(1,118,264	)		(1,071,281	)		46,983			4	%
OTHER INCOME (EXPENSE):
Interest expense, net (including amortization of deferred financing cost and debt discount)		(952,615	)		(927,299	)		25,316			3	%
Other income, net		181,418			317,429			(136,011	)		(43	)%
Total Other Income (Expense)		(771,197	)		(609,870	)		161,327			26	%
NET LOSS	$	(1,889,461	)	$	(1,681,151	)	$	208,310			12	%

Revenue for the six months ended June 30, 2022 totaled $184,150, decrease of $555,015, or 75%, compared to the same period in 2021. The decrease was due to a $413,629 decrease in the sale of AMIRON iron oxide due to the expiration in December 2021 of a supply agreement with a cement producer and a $141,386 decrease in the sale of DRAGONITE halloysite clay.

Sales of AMIRON during the period totaled $17,230, a decrease of 96% when compared to the same period in 2021. The decrease was due in large part to the expiration in December 2021 of a supply agreement with a cement producer. Sales of DRAGONITE during the period totaled $166,921, as decrease of 46% compared to the same period in 2021.The decrease in sales of DRAGONITE was driven primarily by (i) the absence of purchases of DRAGONITE for field trials by certain customers that occurred during the same period in 2021 and (ii) the impact of COVID on certain customers’ decisions to delay the commercialization of new products developed on DRAGONITE. A number of the field trials referenced above are still in process. The Company believes the stalled commercialization of certain customer products using DRAGONITE may resume during the latter half of 2022.

Operating expenses for the six months ended June 30, 2022 totaled $1,302,414, a decrease of $508,032, or 28%, compared to the same period in 2021. The decline was driven primarily by a $569,830, or 64%, decline in production costs partially, a $60,367, or 8%, decline in general and administrative expense, partially offset by a $122,264, or 96%, increase in exploration costs.

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Production costs include those operating expenses which management believes are directly related to the mining and processing of the Company’s iron oxide and halloysite minerals, which result in the production of its AMIRON and DRAGONITE products for commercial sale. Production costs include, but are not limited to, wages and benefits of employees who mine material and who work in the Company’s milling operations, energy costs associated with the operation of the Company’s two mills, the cost of mining and milling supplies and the cost of the maintenance and repair of the Company’s mining and milling equipment. Wages and energy are the two largest components of the Company’s production costs.

Production costs incurred during the six months ended June 30, 2022 were $311,295, a decrease of $569,830, or 65%, compared to the same period in 2021. Approximately $450,000 of the decrease was driven primarily by a reduction in contract labor, wage and mining materials related expenses associated with the expiration in December 2021 of a contract to supply iron to a producer of cement. The remaining reduction of $115,000 was due to the reduction in clay tolling expense. Production expense for the six months ended June 30, 2022 include a charge totaling $39,556, related to an adjustment of the stock component of a settlement entered into with a contract miner in March 2022.

Exploration costs include operating expenses incurred at the Dragon Mine that are not directly related to production activities. Exploration costs incurred during the six months ended June 30, 2022 totaled $250,013, a $122,164, or 96%, increase compared to the same period in 2021. The increase was due primarily to a $$200,000 expense related to a settlement with a contract miner used to mine iron for a supply agreement that expired in December 2021, partially offset by a $43,239 reduction in wage and workers’ compensation expense, a reclassification of $17,673 of health insurance expense and the absence of $14,956 of ground support expense incurred during the six months ended June 30, 2021.

General and administrative expenses incurred during the six months ended June 30, 2022 totaled $741,106, a decline of $60,366, or 8%, when compared to the same period in 2021. The decrease was driven primarily by a $104,861 decrease in wage and wage-related benefit expense and a $23,68 decrease in shareholder-related expenses, partially offset by an increase in professional services expenses of $63,823.  General and administrative expense incurred during the six months ended June 30, 2022 included (i) compensation expense for an employee who resigned in April 2022, (ii) $192,500 of directors’ fees, which the Company expects to be reduced significantly in subsequent quarters upon the expected resignations of three directors and (iii) $112,400 of equity-related compensation expense.

Operating loss incurred during the six months ended June 30, 2022 was $1,118,264, a $46,983, or 4%, increase compared to the same period in 2021. The increase was driven primarily by a $555,015 decrease in revenue and a $122,264 increase in exploration expense, partially offset by a $569,830 decrease in production costs when compared to the same period in 2021.

Total other expense for the six months ended June 30, 2022 was $771,197, an increase of $161,327, or 26%, when compared to the same period in 2021. The $161,327 increase was due primarily to a $136,011 decline in other income when compared to the same period in 2021.

Net loss for the six-month period ending June 30, 2022 was $1,889,461, an increase of $208,310, or 12%, when compared to the same period in 2021. The increase was driven by a $161,327 increase in total other expense and a $46,983 increase in operating loss.

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LIQUIDITY AND CAPITAL RESOURCES 

The Company has suffered recurring losses from operations and currently a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management believes that in order for the Company to meet its obligations arising from normal business operations through August 20, 2023 that the Company may be required (i) to raise additional capital either in the form of a private placement of common stock or debt and/or (ii) generate additional sales of its products that will generate sufficient operating profit and cash flows to fund operations.  Without additional capital or additional sales of its products, the Company’s ability to continue to operate may be limited.

Based on the Company’s current cash usage expectations, management believes it may not have sufficient liquidity to fund its operations through August 22, 2023. Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate additional product sales. Collectively these factors raise substantial doubt regarding the Company’s ability to continue as going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.

Cash used in operating activities during the six months ended June 30, 2022 was $205,800 compared to $848,263 used during the same period in 2021. The difference was due primarily an increase of $524,254 in cash generated from the change in operating assets and liabilities.

Cash provided by financing activities during the six months ended June 30, 2022 was $151,253 compared to $347,632 provided during the same period in 2021. The $196,379 decrease in cash provided during the period was due primarily to $264,472 of proceeds received from a Paycheck Protection Program loan and an increase of $110,000 in proceeds from private placements during 2021, partially offset by $200,000 in proceeds received from loans payable during 2022.

Total assets at June 30, 2022 were $945,890 compared to $1,177,821 at December 31, 2021, a decrease of $231,931 due primarily to decrease in the Company cash, prepaid expenses, operating lease right-of-use assets and deposits. Total liabilities at June 30, 2022 were $52,993,293 compared to $51,578,703 at December 31, 2021. The increase of $1,414,590 in total liabilities was due primarily to $920,192 increase in the PIK Note balance and a $447,161 increase in accounts payable and accrued liabilities. As of June 30, 2022, accrued liabilities included $1,630,811 of directors’ fees.

ISSUANCE OF CONVERTIBLE DEBT

For information with respect to issuance of convertible debt, see Note 8 of Notes to Unaudited Consolidated Financial Statements included elsewhere in this Quarterly Report.

OFF-BALANCE SHEET ARRANGEMENTS

There are no off-balance sheet arrangements between the Company and any other entity that have, or are reasonable likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have no exposure to fluctuations in interest rates, foreign currencies, or other factors. 

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ITEM 4.     CONTROLS AND PROCEDURES

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter covered by this quarterly report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were, as of the end of the fiscal quarter covered by this quarterly report, ineffective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

During the six months ended June 30, 2022, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Notwithstanding the existence of these material weaknesses in our internal control over financial reporting, the management believes that the consolidated financial statements included in this Form 10-Q fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

PART II.     OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

As of the date of this report, there is no pending or threatened litigation. We may become involved in or subject to, routine litigation, claims, disputes, proceedings and investigations in the ordinary course of business, could have a material adverse effect on our financial condition, cash flows or results of operations.

ITEM 1A.  RISK FACTORS.

Except for the below, there were no additions or material changes to the Company’s risk factors disclosed in Item 1A of Part I in the Company’s 2021 Annual Report on Form 10-K.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4.     MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and this Item is included in Exhibit 95 to this Form 10-Q.

ITEM 5.     OTHER INFORMATION

None.

ITEM 6.     EXHIBITS

29

(a) Exhibits.

The following exhibits are included in this report:

Exhibit Number	Description of Exhibit
31.1	Certification pursuant to Rule 13a-14 of the Securities Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Principal Executive Officer
31.2	Certification pursuant to Rule 13a-14 of the Securities Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Principal Financial Officer
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Principal Executive Officer
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Principal Financial Officer
95	Mine Safety Disclosure
101.INS	XBRL Instance
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Labels
101.PRE	XBRL Taxonomy Extension Presentation
XBRL	Information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APPLIED MINERALS, INC.
Dated: August 22, 2022	/s/ CHRISTOPHER T. CARNEY
	By: Christopher T. Carney
	Chief Executive Officer
Dated: August 22, 2022	/s/ CHRISTOPHER T. CARNEY
	By: Christopher T. Carney
	Chief Financial Officer

31

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher T. Carney, certify that:

1. I have reviewed this Form 10-Q of Applied Minerals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 22, 2022	By:	/s/ CHRISTOPHER T. CARNEY
		Christopher T. Carney
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher T. Carney, certify that:

1. I have reviewed this Form 10-Q of Applied Minerals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 22, 2022	By:	/s/ CHRISTOPHER T. CARNEY
		Christopher T. Carney
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Applied Minerals, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof, I, Christopher T. Carney, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 22, 2022	By:	/s/ CHRISTOPHER T. CARNEY
		Christopher T. Carney
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Applied Minerals, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof, I, Christopher T. Carney, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date: August 22, 2022	By:	/s/ CHRISTOPHER T. CARNEY
		Christopher T. Carney
		Chief Financial Officer

EX-95

Exhibit 95

During the second calendar quarter of 2022:

(i) The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under section 104 of the Federal Mine Safety and Health Act of 1977 (30 U.S.C. 814) for which the operator received a citation from the Mine Safety and Health Administration: 0

(ii) The total number of orders issued under section 104(b) of such Act (30 U.S.C. 814(b)): 0

(iii) The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section 104(d) of such Act (30 U.S.C. 814(d)): 0

(iv) The total number of flagrant violations under section 110(b)(2) of such Act (30 U.S.C. 820(b)(2)): 0

(v) The total number of imminent danger orders issued under section 107(a) of such Act (30 U.S.C. 817(a)): 0

(vi) The total dollar value of proposed assessments from the Mine Safety and Health Administration under such Act (30 U.S.C. 801 et seq.): $0

(vii) The total number of mining-related fatalities: 0

(2) A list of coal or other mines, of which the registrant or a subsidiary of the registrant is an operator, that received written notice from the Mine Safety and Health Administration of:

(i) A pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of coal or other mine health or safety hazards under section 104(e) of such Act (30 U.S.C. 814(e)); or (ii) The potential to have such a pattern: 0

(3) Any pending legal action before the Federal Mine Safety and Health Review Commission involving such coal or other mine: 1

1. Contests of citations and orders referenced in Subpart B of 29 CFR part 2700: 0;

2. Contests of proposed penalties referenced in Subpart C of 29 CFR part 2700: 0;

3. Complaints for compensation referenced in Subpart D of 29 CFR part 2700: 0;

4. Complaints of discharge, discrimination or interference referenced in Subpart E of 29 CFR part 2700: 0;

5. Applications for temporary relief referenced in Subpart F of 29 CFR part 2700: 0; and

6. Appeals of judges' decisions or orders to the Federal Mine Safety and Health Review Commission referenced in Subpart H of 29 CFR part 2700: 0

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 22, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Registrant Name	APPLIED MINERALS, INC.
Entity Central Index Key	0000008328
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		366,967,696
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Address, State or Province	UT
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-0096527
Entity Address, Address Line One	1200 Silver City Road, PO Box 432
Entity Address, City or Town	Eureka
Entity Address, Postal Zip Code	84628
Local Phone Number	433-2059
City Area Code	435
Entity File Number	000-31380
Document Quarterly Report	true
Document Transition Report	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash	$ 19,706	$ 74,253
Accounts receivable	24,425	34,309
Deposits and prepaid expenses	67,634	161,999
Total Current Assets	111,765	270,561
Land	500,000	500,000
Operating lease right-of-use asset	0	28,111
Finance lease right-of-use asset	36,906	42,821
Other Assets
Deposits	297,219	336,328
Total Other Assets	297,219	336,328
TOTAL ASSETS	945,890	1,177,821
Current Liabilities
Accounts payable and accrued liabilities	3,464,615	3,017,454
PIK Note interest accrual	377,609	372,028
Current portion of notes payable	189,491	112,835
Current portion of finance lease liabilities	12,337	11,986
Current portion of operating lease liabilities	0	29,085
Total Current Liabilities	4,044,052	3,543,388
Long-Term Liabilities
PIK Notes payable, net of $472,104 and $681,102 debt discount, respectively	47,924,672	47,004,480
Deferred revenue	1,000,000	1,000,000
Finance lease liabilities	24,569	30,835
Total Long-Term Liabilities	48,949,241	48,035,315
TOTAL LIABILITIES	52,993,293	51,578,703
Stockholders' Deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, and 164,000 and 262,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	164	262
Common stock, $0.001 par value, 700,000,000 shares authorized, and 285,787,382 and 217,655,150 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (247,569,392 reserved in Treasury)	285,786	217,654
Additional paid-in capital	74,861,487	74,686,581
Accumulated deficit prior to the exploration stage	(20,009,496)	(20,009,496)
Accumulated deficit during the exploration stage	(107,185,344)	(105,295,883)
Total Stockholders' Deficit	(52,047,403)	(50,400,882)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 945,890	$ 1,177,821

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
PIK Notes payable, debt discount	$ 472,104	$ 681,102
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	164,000	262,000
Preferred Stock, Shares Outstanding	164,000	262,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	700,000,000	700,000,000
Common Stock, Shares, Issued	285,787,382	217,655,150
Common Stock, Shares, Outstanding	285,787,382	217,655,150
Treasury Stock, Common, Shares	247,569,392	247,569,392

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
REVENUES	$ 106,105	$ 465,493	$ 184,150	$ 739,165
OPERATING EXPENSES:
Production costs	177,959	418,959	311,295	881,125
Exploration costs	6,543	76,259	250,013	127,849
General and administrative	335,728	411,949	741,106	801,472
Total Operating Expenses	520,230	907,167	1,302,414	1,810,446
Operating Loss	(414,125)	(441,674)	(1,118,264)	(1,071,281)
OTHER INCOME (EXPENSES):
Interest expense, net (including amortization of deferred financing cost and debt discount)	(480,717)	(463,402)	(952,615)	(927,299)
Other income, net	121,046	69,883	181,418	317,429
Total Other (Expenses)	(359,671)	(393,519)	(771,197)	(609,870)
NET LOSS	$ (773,796)	$ (835,193)	$ (1,889,461)	$ (1,681,151)
Net Loss Per Common Share Basic	$ 0	$ 0	$ (0.01)	$ (0.01)
Net Loss Per Common Share Diluted	$ 0	$ 0	$ (0.01)	$ (0.01)
Weighted Average Common Shares Outstanding Basic	229,964,647	195,105,088	243,688,779	191,693,131
Weighted Average Common Shares Outstanding Diluted	229,964,647	195,105,088	243,688,779	191,693,131

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit Prior to Exploration Stage [Member]	Accumulated Deficit During Exploration Stage [Member]
Balance at Dec. 31, 2020	$ (47,829,437)	$ 183,939	$ 128	$ 74,008,636	$ (20,009,496)	$ (102,012,644)
Balance (in shares) at Dec. 31, 2020		183,938,549	128,000
Shares issued for conversion of Series B Preferred Stock	$ 7,680	$ 6,167	$ (128)	1,641
Shares issued for conversion of Series B Preferred Stock (in shares)		6,167,273	(128,000)
Shares issued as part of settlement of liability (in shares)		1,162,791
Issuance of shares for debt issuance cost		$ 58,140
Issuance of shares of common stock for consulting services (in shares)	9,528,689	3,836,475
Shares issued in private placement	$ 185,000		$ 176	184,824
Shares issued in private placement (in shares)			176,136
Beneficial conversion feature on Series B Preferred Stock	112,612			112,612
Deemed dividend from beneficial conversion feature on Series B Preferred Stock	(112,612)			(112,612)
Shares issued upon cashless exercise of options		$ 3,836		(3,836)
Shares issued upon cashless exercise of options (in shares)		3,836,475
Shares issued for employee bonus	58,140	$ 1,163		56,977
Shares issued for employee bonus (in shares)		1,162,791
Stock option compensation expense	7,886			7,886
Net Loss	(1,681,151)					(1,681,151)
Balance at Jun. 30, 2021	(49,251,882)	$ 195,105	$ 176	74,256,128	(20,009,496)	(103,693,795)
Balance (in shares) at Jun. 30, 2021		195,105,088	176,136
Balance at Mar. 31, 2021	(48,505,632)	$ 195,105	$ 95	74,167,266	(20,009,496)	(102,858,602)
Balance (in shares) at Mar. 31, 2021		195,105,088	95,000
Shares issued in private placement	85,000		$ 81	84,919
Shares issued in private placement (in shares)			81,136
Beneficial conversion feature on Series B Preferred Stock	51,874			51,874
Deemed dividend from beneficial conversion feature on Series B Preferred Stock	(51,874)			(51,874)
Stock option compensation expense	3,943			3,943
Net Loss	(835,193)					(835,193)
Balance at Jun. 30, 2021	(49,251,882)	$ 195,105	$ 176	74,256,128	(20,009,496)	(103,693,795)
Balance (in shares) at Jun. 30, 2021		195,105,088	176,136
Balance at Dec. 31, 2021	$ (50,400,882)	$ 217,654	$ 262	74,686,581	(20,009,496)	(105,295,883)
Balance (in shares) at Dec. 31, 2021		217,655,150	262,000
Shares issued for conversion of Series B Preferred Stock		$ 53,388	$ (176)	(53,212)
Shares issued for conversion of Series B Preferred Stock (in shares)	20,164,153	53,387,788	(176,000)
Shares issued as part of settlement of liability	$ 53,778	$ 4,444		49,334
Shares issued as part of settlement of liability (in shares)		4,444,444
Issuance of shares for debt issuance cost	1,740	$ 300		1,440
Issuance of shares for debt issuance cost (in shares)		300,000
Issuance of shares of common stock for consulting services	70,000	$ 10,000		60,000
Issuance of shares of common stock for consulting services (in shares)		10,000,000
Beneficial conversion feature on Series B Preferred Stock	25,947			25,947
Deemed dividend from beneficial conversion feature on Series B Preferred Stock	(25,947)			(25,947)
Shares of Series B Preferred Stock issued to Geneva Roth	$ 75,000		$ 78	74,922
Shares of Series B Preferred Stock issued to Geneva Roth (in shares)			78,000
Shares issued upon cashless exercise of options (in shares)	0
Stock option compensation expense	$ 42,422			42,422
Net Loss	(1,889,461)					(1,889,461)
Balance at Jun. 30, 2022	(52,047,403)	$ 285,786	$ 164	74,861,487	(20,009,496)	(107,185,344)
Balance (in shares) at Jun. 30, 2022		285,787,382	164,000
Balance at Mar. 31, 2022	(51,369,818)	$ 252,562	$ 187	74,798,477	(20,009,496)	(106,411,548)
Balance (in shares) at Mar. 31, 2022		252,563,747	187,000
Shares issued for conversion of Series B Preferred Stock		$ 33,224	$ (101)	(33,123)
Shares issued for conversion of Series B Preferred Stock (in shares)		33,223,635	(101,000)
Beneficial conversion feature on Series B Preferred Stock	25,947			25,947
Deemed dividend from beneficial conversion feature on Series B Preferred Stock	(25,947)			(25,947)
Shares of Series B Preferred Stock issued to Geneva Roth	75,000		$ 78	74,922
Shares of Series B Preferred Stock issued to Geneva Roth (in shares)			78,000
Stock option compensation expense	21,211			21,211
Net Loss	(773,796)					(773,796)
Balance at Jun. 30, 2022	$ (52,047,403)	$ 285,786	$ 164	$ 74,861,487	$ (20,009,496)	$ (107,185,344)
Balance (in shares) at Jun. 30, 2022		285,787,382	164,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities:
Net loss	$ (1,889,461)	$ (1,681,151)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation of finance lease	5,915	1,874
Amortization of debt discount	2,143	0
Amortization of discount - PIK Notes	208,998	198,304
Accrued interest on PIK Notes	721,659	702,434
Stock issued for settlement liability	53,778	0
Stock based compensation expense	112,422	66,026
Non-cash lease expense	28,111	53,264
Stock issued for interest	0	7,680
Forgiveness of PPP Fund	0	(223,075)
Change in operating assets and liabilities:
Accounts receivable	9,884	(68,117)
Deposits and prepaids	133,474	111,118
Operating lease liabilities	(29,085)	(54,356)
Financing lease liabilities	(5,915)	0
Accounts payable and accrued liabilities	442,277	37,736
Net cash (used in) provided by operating activities	(205,800)	(848,263)
Cash Flows from Financing Activities:
Payment on finance lease liability	(6,029)	(2,028)
Proceeds from notes payable	200,000	0
Proceeds from Paycheck Protection Program loan	0	264,472
Payments on notes payable	(31,777)
Proceeds from private placement	75,000	185,000
Payments on insurance financing	(85,941)	(99,812)
Net cash provided by (used in) financing activities	151,253	347,632
Net change in cash	(54,547)	(500,631)
Cash at beginning of period	74,253	669,560
Cash at end of period	19,706	168,929
Supplemental disclosure of cash flow information:
Cash paid for interest	4,624	5,380
Cash paid for income taxes	0	0
Supplemental disclosure of non-cash financing activity:
Capitalization of ROU asset and finance lease liability	0	50,573
Boral settlement payable	4,844	0
Deemed dividend on Series B Preferred Stock due to BCF	25,947	112,612
Accrued PIK interest paid through issuance of PIK Notes	716,078	703,260
Stock issued for cashless options exercised	1,740	3,836
Common stock issued upon conversion of Series B Preferred Stock	$ 53,388	$ 0

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization And Description Of Business

NOTE 1– ORGANIZATION AND DESCRIPTION OF BUSINESS

Applied Minerals, Inc. (the “Company” or “Applied Minerals” or “we” or “us”) (OTCQB: AMNL) is the owner of the Dragon Mine located in the Tintic Mining District of the State of Utah from where it produces halloysite clay and iron oxide. The Company markets its halloysite clay under the DRAGONITE trade name. The Company markets its DRAGONITE halloysite clay products into the as an additive into the ceramic, molecular sieve, catalyst, polymer, flame retardant, and coatings markets. The Company regularly sells its halloysite clay products to six customers. Several prospective customers are conducting either commercial-scale trials or field trials for an array of products that use DRAGONITE. The Company believes its DRAGONITE halloysite clay has potential use in lithium-ion battery formulations. In particular, halloysite has been shown to be an effective precursor of porous silicon for use as anode material, a coating to improve the conductivity of separators and an additive to improve the conductivity of solid polymer electrolytes. In June 2021, the Company received a $200,000 U.S. DOE STTR Phase I award to develop a process that produces halloysite-derived porous silicon for use as anode material. In April 2022, the Company applied for $1.15 million U.S. DOE STTR Phase II award to scale up the process developed under the Phase I award. On July 11, 2022, the Company announced that it entered into an agreement to sell the assets related to its iron oxide resource. On August 9, 2022 the sale of the assets related to the Company’s iron oxide resource closed.  

Applied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC under the symbol AMNL.  

Status of the Company for SEC Reporting Purposes

The Company is classified as an “exploration stage” company for purposes of Industry Guide 7 of the U.S. Securities and Exchange Commission (“SEC”).

Under Industry Guide 7, companies engaged in significant mining operations are classified into three categories, referred to as “stages” - exploration, development, and production.

Exploration stage includes all companies that do not have established reserves in accordance with Industry Guide 7. Such companies are deemed to be “in the search for mineral deposits.” Notwithstanding the nature and extent of development-type or production-type activities that have been undertaken or completed, a company cannot be classified as a development or production stage company unless it has established reserves in accordance with Industry Guide 7.

Exploration Agreement

On December 22, 2017, the Company and Continental Mineral Claims, Inc. (“CMC”) entered into an Exploration Agreement with Option to Purchase (“Agreement”). The Company granted to CMC the exclusive right and option to enter upon and conduct mineral exploration activities (the “Exploration License”) for Metallic Minerals on the Company’s Dragon Mine minesite in Utah (the “Mining Claims”).  Metallic Minerals are defined to include minerals with a high specific gravity and metallic luster, such as gold, silver, lead, copper, zinc, molybdenum, titanium, tungsten, uranium, tin, iron, etc., but shall exclude any such Metallic Minerals that are intermingled within any economically-recoverable, non-metallic mineral deposits located at or above an elevation of 5,590 feet above sea level. Non-metallic minerals include clay and iron oxide, the minerals mined by the Company.  The Company believes that all economic recoverable non-metallic mineral deposits are well above 5,590 feet above sea level. The Exploration License is for a period of ten years.

In consideration of the Exploration License CMC paid the Company $350,000 upon the execution of the agreement and paid it $150,000 on the first anniversary of the Exploration License in December 2018. Per the agreement CMC was obligated to pay the Company $250,000 on or before each subsequent anniversary during the Exploration License term following the first anniversary of the Effective Date of the Agreement unless the Exploration License was terminated earlier by CMC by exercising the option or failing to make the required payment for the Exploration License.

On March 25, 2020, the Company and Tintic Copper and Gold, Inc. (CMC’s successor) (“Tintic”) agreed to lower the exercise price of the Option to $1,050,000 and Tintic immediately exercised the Option. The proceeds from the exercise of the Option are presented as Other Income. The Company also provided Tintic with a Right of First Offer, which will expire on December 21, 2027 and can be extended to December 21, 2032 for a payment of $250,000 by Tintic to the Company. 

Upon the exercise of the option, the Company retained the all rights and title to (1) the surface interest (with exception of those rights associated with the Metallic Rights), and (2) all non-metallic minerals (expressly including all industrial minerals including clays and iron oxides).

Upon the exercise of the option the Company retained protections against unreasonable interference of its current and future mining operations by CMC. CMC may not do anything that may, at the Company’s determination, adversely impact the Company’s Mining Operations.  “Mining Operations” shall mean the activities incident to mineral extraction, permitting, and any operations by CMC or the Company relating to the removal of minerals, respectively, that are or may reasonably be conducted on the Mining Claims, including the exploration for, and development, active mining, removing, producing and selling of any minerals, including the Metallic Minerals.  The Agreement states that the parties understand that the Company was willing to enter into the Agreement only if it was assured that CMC would not have any right to unreasonably interfere with the Company’s current mining operations and possible future Mining Operations on the Mining Claims.

Impact of COVID–19 Pandemic on Financial Statements

In December 2019, a novel strain of COVID-19 was reported in China. Since then, COVID-19 has spread globally, to include Canada, the United States and several European countries. The spread of COVID-19 from China to other countries has resulted in the World Health Organization (WHO) declaring the outbreak of COVID-19 as a “pandemic,” or a worldwide spread of a new disease, on March 11, 2020. Since then, many countries around the world imposed quarantines and restrictions on travel and mass gatherings to slow the spread of the virus and have closed non-essential businesses.

The effects of the COVID-19 restrictions adversely affected our business in 2020 and 2021 as certain customers delayed purchases of our DRAGONITE halloysite clay products. As countries, including the U.S., begin to ease restrictions, some of our customers have begun to resume their previously planned purchases of our DRAGONITE halloysite clay products.

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GOING CONCERN AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2022

Going Concern And Basis Of Presentation [Abstract]

Going Concern And Basis Of Presentation

NOTE 2 – GOING CONCERN AND BASIS OF PRESENTATION

The Company has suffered recurring losses from operations and currently a working capital deficit. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management believes that in order for the Company to meet its obligations arising from normal business operations through August 22, 2023 that the Company may be required (i) to raise additional capital either in the form of a private placement of common stock or debt and/or (ii) generate additional sales of its products that will generate sufficient operating profit and cash flows to fund operations.  Without additional capital or additional sales of its products, the Company’s ability to continue to operate may be limited.

Based on the Company’s current cash usage expectations, management believes it may not have sufficient liquidity to fund its operations through August 22, 2023. Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate additional product sales. Collectively these factors raise substantial doubt regarding the Company’s ability to continue as going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.

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BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Reporting and Significant Accounting Policies

NOTE 3 – BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements of Applied Minerals, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, these interim unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature, which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the operating results for the entire year. These financial statements should be read in conjunction with the financial statements and related disclosures for the year ended December 31, 2021, included in the Annual Report of Applied Minerals, Inc. on Form 10-K filed with the SEC on April 18, 2022.

The accompanying interim unaudited consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes. As of August 20, 2022, the Company’s significant accounting policies and estimates remain unchanged from those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Consolidated Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of June 30, 2022, the extent to which the effects of the COVID-19 pandemic may impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions still require increased judgment and carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic, our estimates may materially change in future periods.

Concentration of Credit Risk

Cash balances, accounts receivable and derivative financial instruments are financial instruments potentially subject to credit risk. Cash and cash equivalents are maintained in bank deposit accounts, which, at times, may exceed the federally insured limits. Management periodically reviews and assesses the financial condition of the banks to mitigate the risk of loss.

For the six months ended June 30, 2022 and 2021, revenues from the Company’s largest customer accounted for 21% and 58% of total revenues, respectively. As of June 30, 2022 and 2021, amounts owed from these customers comprised 0% and 18% of accounts receivable, respectively.

Receivables

Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts.

Management evaluates the collectability of receivable account balances to determine the allowance, if any. Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance. Receivable balances are written off when management determines that the balance is uncollectable. No allowance was required at June 30, 2022 and December 31, 2021.

Property and Equipment

Property and equipment are carried at cost net of accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

	Estimated
	Useful Life (years)
Building and Building Improvements		5 – 40
Mining equipment		2 – 7
Office and shop furniture and equipment		3 – 7
Vehicles		5

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount. If this comparison indicates that there is impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. The Company has determined that there was no impairment of its long-lived assets as of June 30, 2022 and 2021.

Revenue Recognition

Revenue includes sales of halloysite clay and iron oxide and is recognized when title passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract. Product pricing is determined based on contractual arrangements with the Company’s customers. The Company’s revenue recognition policies are established in accordance with the Revenue Recognition topics of ASC 606, and accordingly, revenue is recognized when control of the promised goods or services is transferred to our clients, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. The Company recognizes revenue at a point in time based on management’s evaluation of when performance obligations under the terms of a contract with the customer are satisfied and control of the product has been transferred to the customer. In most situations, transfer of control is considered complete when the products have been shipped to the customer.

Mining Exploration and Development Costs

Land and mining property are carried at cost. The Company expenses prospecting and mining exploration costs. At the point when a property is determined to have proven and probable reserves, subsequent development costs will be capitalized and will be charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized.

Income taxes

The Company uses an asset and liability approach which results in the recognition of deferred tax liabilities and assets for the expected future tax consequences or benefits of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as well as operating loss and tax credit carry forwards, using enacted tax rates in effect in the years in which the differences are expected to reverse.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A full valuation allowance has been provided for the Company’s net deferred tax assets as it is more likely than not that they will not be realized.

Authoritative guidance provides that the tax effects from an uncertain tax position taken or expected to be taken in a tax return can be recognized in our financial statements only if the position is more likely than not of being sustained on audit based on the technical merits of the position. As of June 30, 2022, no benefit from uncertain tax positions was recognized in our financial statements. The Company has elected to classify interest and/or penalties related to income tax matters in income tax expense.

Stock Options and Warrants

The Company follows ASC 718 (Stock Compensation) and ASU 2018-07 (Compensation – Stock Compensation), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company instituted a formal long-term and short-term incentive plan on November 20, 2012, which was approved by its shareholders. Prior to that date, we did not have a formal equity plan, but all equity grants, including stock options and warrants, were approved by our Board of Directors. We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Beginning in the quarter ended June 30, 2013, the Company began using the simplified method to determine the expected term for any options granted because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The Company previously utilized the contractual term as the expected term.

Environmental Matters

Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate. Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed. Liabilities are recognized when environmental assessments indicate that remediation efforts are probable, and the costs can be reasonably estimated.

Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors and include estimates of associated legal costs. These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations. Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology, and inflation. Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability.

The Company has posted a cash bond in the amount of $297,000 required by the Utah Department of Oil, Gas and Minerals to cover estimated reclamation costs related the Company large mining permit for its Dragon Mine property. 

Note Payable - Convertible

The Company follows ASC 480-10, Distinguishing Liabilities from Equity (“ASC 480-10”) in its evaluation of the accounting for a certain instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in interest expense in the accompanying Consolidated Statements of Operations.

Recent Issued Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 for its fiscal year ending December 31, 2021.

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LEASES

6 Months Ended

Jun. 30, 2022

Leases [Line Items]

Leases

NOTE 4 – LEASES

Finance Lease

On May 14, 2021, the Company entered into a 4-year financing lease agreement for laboratory equipment. The base rent payment is approximately $1,107 per month.

Supplemental cash flow information related to leases:	Three months ended June 30, 2022			Six months ended June 30, 2022
Finance cash flows from finance lease	$	(3,161	)	$	(5,915	)
Operating cash flows from finance lease	$	3,161		$	5,915

Supplemental balance sheet information related to leases:	As of June 30, 2022
Finance lease Right-of-use assets	$	36,906
Current portion of finance lease liability	$	12,337
Long-term finance lease liability		24,569
Total finance lease liability	$	36,906
Weighted average remaining operating lease term		2.75 years
Weighted average discount rate		6	%

The following table summarizes the maturity of lease liability under finance lease as

of June 30, 2022:

2022 (remaining six months)	$	7,049
2023		14,099
2024		14,099
2025		4,700
Total lease payments		39,947
Less: imputed interest		(3,041	)
Total lease liabilities	$	36,906

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DEPOSIT

6 Months Ended

Jun. 30, 2022

Deposit [Abstract]

Deposit

NOTE 5 – DEPOSIT

The following is a summary of deposit:

	June 30, 2022		December 31, 2021
Cash Bond (Mine Permit deposit)	$	297,219	$	297,160
Office Lease Security Deposit		-		39,168
Total	$	297,219	$	336,328

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NOTES PAYABLE

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Notes Payable

NOTE 6 - NOTES PAYABLE

Notes payable at June 30, 2022 and December 31, 2021 consist of the following:

	June 30, 2022			December 31, 2021
Note payable to insurance companies, payable $1,780 and $12,804 monthly, (a)	$	26,894		$	112,835
Promissory note (b)	$	62,546		$	-
Loan payable (c)	$	100,051		$
	$	189,491		$	112,835
Less: Current Portion	$	(189,491	)	$	(112,835	)
Notes Payable, Long-Term Portion	$	-		$	-

(a) In October 2021, the Company entered into two notes payable with interest rates of 4.04% and 6.29% with an insurance company for liability insurance, payable in 10 monthly installment payments, which started in November 2021.

(b) In January 2022, the Company entered into a promissory note agreement for $90,000, including an original issue discount of 16.7% resulting in net proceeds of $75,000. The annual interest rate is 10%. Principal and interest is due to the lender in seven equal monthly payments of $14,142.50 commencing on June 24, 2022 until the promissory note is paid in full no later than January 24, 2023. In the event of default, the lender will have the right to convert the outstanding principal and interest into stock at a price equal to ninety (90) percent of the lowest trading price over a ten (10) day trading period immediately prior to the date of conversion. As part of entering into the promissory note agreement, the Company issued 300,000 restricted shares of common stock under the lender.

(c) In March 2022, the Company entered into a loan payable with a lender for $125,000. Payment of the loan includes one installment of $1,215.19 followed by seventy-nine (79) weekly installments of $2,025.32 totalling $165,000. The lender has been provided a security interest in certain inventory and equipment. Excluded is the Company’s Alpine mill and related equipment.

During the six months ended June 30, 2022 and 2021, the Company's interest payments totaled $4,624 and $5,380, respectively.

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CONVERTIBLE DEBT

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

CONVERTIBLE DEBT

NOTE 7 – CONVERTIBLE DEBT

PIK Notes

The Company raised $23 million of financing through the issuance of two series of Paid-In-Kind (“PIK”)-Election Convertible Notes in 2013 (“Series 2023 Notes”) and 2014 (“Series A Notes”). The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of the Series 2023 Notes included among other things: (i) a maturity of August 1, 2023, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $1.40, adjusted downward based on an anti-dilution provision. On December 14, 2017, an amendment agreement, entered into between the Company and the holders of the Series A Notes and Series 2023 Notes, went into effect. The agreement resulted in changes to certain terms of the Series A and Series 2023 Notes. The key terms of the Series A and Series 2023 Notes, as amended, are highlighted in the table below:

Key Terms	Series 2023 Notes	Series A Notes
Inception Date	08/01/2013	11/03/2014
Cash Received	$10,500,000	$12,500,000
Principal (Initial Liability)	$10,500,000	$19,848,486
Maturity (Term)	Matures on August 1, 2023, but convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;	Matures on May 1, 2023 but extends to August 1, 2023 if the Series 2023 Notes are still outstanding. Convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;
Exercise Price	$0.47, as adjusted downward based on anti-dilution provisions/down-round protection	$0.26, as adjusted downward based on anti-dilution provisions/down-round protection;
Stated Interest	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;

In April 2019 the Company entered into a settlement agreement with the holders of the Series A Notes and Series 2023 Notes (the “PIK Notes”). Per the terms of the agreement the Company will pay to holders of PIK Notes on a pro rata basis the following percentages of revenue booked during a fiscal quarter: (a) three percent (3%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter; or (b) five percent (5%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million the last day of the fiscal quarter; or (c) twelve percent (12%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million.

As of June 30, 2022, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	18,024,680	$	30,372,096		$	48,396,776
Less: Discount		-		(472,104	)		(472,104	)
PIK Note Payable, Net	$	18,024,680	$	29,899,992		$	47,924,672

As of December 31, 2021, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	17,759,822	$	29,925,760		$	47,685,582
Less: Discount		-		(681,102	)		(681,102	)
PIK Note Payable, Net	$	17,759,822	$	29,244,658		$	47,004,480

Series A Notes (Amended)

On November 3, 2014 (“Issue Date”), the Company issued, in a private placement pursuant to investment agreements, $19,848,486 principal amount of 10% PIK-Election Convertible Notes due 2018 ("Series A Notes") in exchange for $12,500,000 in cash and the cancellation of previously issued warrants held by one investor.

The original terms of the Series A Notes included among other things: (i) a maturity of November 1, 2018 with an option to extend to November 1, 2019, (ii) a stated interest rate of 10% paid semi-annually and (iii) a conversion price of $0.90, adjusted downward based on an anti-dilution provision. The original terms of both the Series A Notes and Series 2023 Notes can be as exhibits to Forms 8-K filed on November 5, 2014.

Below are key amended terms of the Series A Notes:

● Maturity: May 1, 2023.

● Exercise Price: $0.40 per share and will be adjusted from time to time pursuant anti-dilution provisions.

● Stated Interest: 10% payable semi-annually in arrears through December 14, 2017, 3% payable semi-annually in arrears thereafter.

● Liquidated Damages: The Company is required to pay the noteholders 1% of the principal amount of the Series A Notes if a Registration statement is not filed and effective within 90 days of the inception date (and further damages for every 30 days thereafter).

● The number of shares issuable under the Notes may be affected by the anti-dilution provisions of the Notes. The antidilution provisions adjust the Exercise Price of the Notes in the event of stock dividends and splits, issuance below the market price of the common stock, issuances below the conversion price of the Notes, pro rata distribution of assets, rights plans, tender offers, and exchange offers.

The entire principal amount of the Series A Notes and accrued interest thereon shall be mandatorily converted into shares of the Company’s common stock if (i) the Volume Weighted Average Price (“VWAP”) of the thirty (30) preceding trading days is at or greater than $1.00 or the VWAP of the ten (10) preceding trading days is at or greater than $1.40; (ii) the closing market price of the shares of the Company’s common stock is at or greater than $1.00; (iii) all outstanding amounts under each Series 2023 Note or replacement financing, if any, shall have been converted into shares of the Company’s common stock pursuant to the terms of such Series 2023 Note or the replacement financing, if any, on or prior to the date on which a notice of mandatory conversion is received; and (iv) either (x) a registration statement is effective and available for the resale of all of the shares into which the Series A Notes convert on the date on which the Series A notes are mandatorily converted and each of the five (5) trading days prior to the date of mandatory conversion and on the date of mandatory conversion the holders of the Series A Notes are not restricted from selling or distributing any shares into which the Series A Notes convert pursuant to the provisions of the Registration Rights Agreement or (y) the holders Series A Notes may sell all such shares into which the Series A Notes convert immediately under Rule 144 under the Securities Act.

The Series A Notes were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability, or any net investment in a foreign operation. In addition to the customary anti-dilution provisions the notes contain a down-round provision whereby the conversion price would be adjusted downward in the event that additional shares of the Company’s common stock or securities exercisable, convertible or exchangeable for the Company’s common stock were issued for cash consideration (e.g. a capital raise) at a price less than the conversion price. Therefore, the estimated fair value of the conversion feature of $9,212,285 (based on observable inputs using a Monte Carlo model) was bifurcated from the Series A Notes and accounted for as a separate derivative liability, which resulted in a corresponding amount of debt discount on the Series A Notes. In addition, an additional debt discount of $7,348,486 was recorded as a result of the difference between the $12,500,000 of cash received and the $19,848,486 of principal on the Series A Notes. This combined debt discount of $16,560,771 is being amortized using the effective interest method over the 9-year term of the Notes as Interest Expense, while the PIK Note Derivative is carried at fair value (using a Monte Carlo model) until the Notes are converted or otherwise extinguished. Any changes in fair value are recognized in earnings.

During the six months ended June 30, 2022, the Company issued additional Series A Notes of $449,384 in lieu of cash interest payments. The carrying value of the Series A Notes payable as of June 30, 2022 was $29,899,992.

The amortized debt discount expensed during the three months ended June 30, 2022 was $105,186.

As of June 30, 2022, the Company was in compliance with the covenants of the Series A Notes.

As of June 30, 2022, Geoffrey Scott, a director of the Company owned $4,642,137 of principal of the Series A Notes.

Series 2023 Notes (Amended)

In August 2013, the Company received $10,500,000 of financing through the private placement of 10% mandatory convertible Notes due 2023 ("Series 2023 Notes"). The principal amount of the Notes is due on maturity. The Company can elect to pay semi-annual interest on the Series 2023 Notes with additional PIK Notes containing the same terms as the Series 2023 Notes, except interest will accrue from issuance of such notes. The Company can also elect to pay interest in cash.

The Series 2023 Notes convert into the Company’s common stock at a conversion price of $0.59 per share, which is subject to customary anti-dilution adjustments; the holders may convert the Series 2023 Notes at any time. The Series 2023 Notes are mandatorily convertible after one year when the weighted average trading price of a share of the common stock for the preceding ten trading days is in excess of the conversion price. The Series 2023 Notes contain customary representations and warranties and several covenants. The proceeds are being used for general corporate purposes. No broker was used and no commission was paid in connection with the sale of the Series 2023 Notes.

These Series 2023 Notes were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. In addition to the customary anti-dilution provisions the notes contain a down-round provision whereby the conversion price would be adjusted downward in the event that additional shares of the Company’s common stock or securities exercisable, convertible or exchangeable for the Company’s common stock were issued for cash consideration (e.g. a capital raise) at a price less than the conversion price. Therefore, the estimated fair value of the conversion feature of $2,055,000 (based on observable inputs using a Monte Carlo model) was bifurcated from the Series 2023 Notes and accounted for as a separate derivative liability, which resulted in a corresponding amount of debt discount on the Series 2023 Notes. The debt discount is being amortized using the effective interest method over the 10-year term of the Series 2023 Notes as Interest Expense, while the PIK Note Derivative is carried at fair value (using a Monte Carlo model) until the Series 2023 Notes are converted or otherwise extinguished. Any changes in fair value are recognized in earnings.

During the six months ended June 30, 2022, the Company issued additional PIK Notes of $266,694 in lieu of cash interest payments. The carrying value of the Series 2023 Notes Payable was $18,024,680 as June 30, 2022. 

As of June 30, 2022, the Company was in compliance with the covenants of the Series 2023 Notes.

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STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure

NOTE 8 – STOCKHOLDERS’ EQUITY

Preferred Stock

The Company is authorized to issue 10,000,000 shares of noncumulative, non-voting, nonconvertible preferred stock, $0.001 par value per share.

At June 30, 2022 and December 31, 2021, 164,000 and 262,000 shares of Series B Preferred Stock were issued and outstanding, respectively.

2022

On May 3, 2022, 78,000 shares of Series B Preferred Stock were issued at a stated price of $1.00 per share for cash proceeds of $75,000, net of $3,000 in legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $49,869 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

2021

On February 17, 2021, 95,000 shares of Series B Preferred Stock were issued at a stated price of $1.084 per share for cash proceeds of $100,000, net of $3,000 legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $60,738 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

On May 24, 2021, 81,136 shares of Series B Preferred Stock were issued at a stated price of $1.084 per share for cash proceeds of $85,000, net of $3,000 in legal fees.

At the time of issuance, the Company evaluated the nature of Series B Preferred Stock and concluded it more akin to equity and recorded it as permanent equity. The Company also recorded a $51,874 beneficial conversion feature to additional paid in capital and amortized at the time of issuance.

Each share of Series B Preferred Shares will carry an annual dividend in the amount of twelve percent (12%) of the Stated Value (the “Divided Rate”), which shall be cumulative and compounded daily, payable solely upon redemption, liquidation or conversion. The Company has the right to redeem all or any portion of the shares within 180 days following the issuance day.

The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the Issuance Date, to convert all or any part of the outstanding Series B Preferred Stock into fully paid and non-assessable shares of Common Stock. The conversion price (the “Conversion Price”) shall equal the 61% multiplied by the Market Price (representing a discount rate of 39%). “Market Price” means the lowest Trading Price for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.

Common Stock 

The Company is authorized to issue 700,000,000 shares of common stock with a $0.001 par value per share.

At June 30, 2022 and December 31, 2021, 285,787,382 and 217,655,150 shares were issued and outstanding, respectively.

2022

During the six months ended June 30, 2022, (i) 20,164,153 shares of common stock were issued upon the conversion of 75,000 shares of Series B Preferred Stock issued in August 2021, (ii) 10,000,000 shares of common stock were issued as in conjunction with entering into a consulting agreement with an investor relations firm, (iii) 4,444,444 shares were issued to settle certain liabilities, (iv) 300,000 shares of common stock were issued as debt issuance cost, (v) 9,275,000 shares of common stock were issued upon the conversion of 35,000 shares of Series B Preferred Stock issued in August 2021, and (vi) 23,948,635 shares of common stock issued upon the conversion of 66,000 shares of Series B Preferred Stock issued in September 2021.

2021

During the six months ended June 30, 2021, (i) 6,167,273 shares of common stock were issued upon the conversion of 128,000 shares of Series B Preferred Stock issued in August 2020, (ii) 3,836,475 shares of common stock were issued upon the cashless exercise of options to purchase 9,528,689 shares of common stock, and (iii) 1,162,791 shares of common stock were issued to an employee in lieu of a bonus payment of $58,140.

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OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK

6 Months Ended

Jun. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Options And Warrants To Purchase Common Stock

NOTE 9 – OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK

Outstanding Stock Warrants

A summary of the status and changes of the warrants issued for the six months ended June 30, 2022:

	Shares Issuable
	upon Exercise of		Weighted Average
	Outstanding Warrants		Exercise Price
Outstanding at December 31, 2021		11,000,000	$	0.10
Issued		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at June 30, 2022		11,000,000	$	0.10

At June 30, 2022, the intrinsic value of the outstanding warrants was $0.

A summary of the status of the warrants outstanding and exercisable at June 30, 2022 is presented below:

			Warrants Outstanding and Exercisable
			Shares Issuable	Weighted Average
			upon Exercise of	Remaining		Weighted Average
Exercise Price			Outstanding Warrants	Contractual Life (years)		Exercise Price
	$	0.10	11,000,000	0.42	$	0.10
			11,000,000	0.42	$	0.10

Outstanding Stock Options

On November 20, 2012, the shareholders of the Company approved the adoption of the Applied Minerals, Inc. 2012 Long-Term Incentive Plan (“LTIP”) and the Short-Term Incentive Plan (“STIP”) and the performance criteria used in setting performance goals for awards intended to be performance-based. Under the LTIP, 8,900,000 shares are authorized for issuance. The STIP does not refer to a particular number of shares under the LTIP, but would use the shares authorized in the LTIP for issuance under the STIP. The CEO, the CFO, and named executive officers, and directors, among others are eligible to participate in the LTIP and STIP. Prior to the adoption of the LTIP and STIP, stock options were granted under individual arrangements between the Company and the grantees, and approved by the Board of Directors.

On December 7, 2016, the stockholders of the Company approved the 2016 Incentive Plan. The purpose of the 2016 Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer eligible employees, consultants, and non-employee directors incentive awards in order to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholders. The aggregate number of shares of Common Stock that may be issued or used for reference purposes under the 2016 Incentive Plan or with respect to which awards may be granted may not exceed 15,000,000 shares, which may be either (i) authorized and unissued Common Stock or (ii) Common Stock held in or acquired for the treasury of the Company. 

The Compensation Committee of the Company Board of Directors has full authority to administer and interpret the 2016 Incentive Plan, to grant awards under the 2016 Incentive Plan, to determine the persons to whom awards will be granted, to determine the types of awards to be granted, to determine the terms and conditions of each award, to determine the number of shares of Common Stock to be covered by each award and to make all other determinations in connection with the 2016 Incentive Plan and the awards thereunder as the Committee, in its sole discretion, deems necessary or desirable.

The fair value of each of the Company's stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model. Expected volatility is based on an average of historical volatility of the Company's common stock. The risk-free interest rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon U.S. Treasury Bond on the date the award is granted with a maturity equal to the expected term of the award. The Company did not grant any stock option awards during the six months ended June 30, 2022.

A summary of the status and changes of the options granted under stock option plans and other agreements during the six months ended June 30, 2022:

	Shares Issued Upon Exercise of Options			Weighted Average Exercise Price
Outstanding at December 31, 2021		52,790,845		$	0.25
Granted		-			-
Exercised		-			-
Forfeited		(3,854,653	)		0.79
Outstanding at June 30, 2022		48,936,192		$	0.21

A summary of the status of the options outstanding at June 30, 2022 is presented below:

	Options Outstanding						Options Exercisable
Range of per share exercise price	Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price		Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price
$0.03 - $0.08		38,409,881		4.91	$	0.05		38,016,131		4.92	$	0.05
$0.10 - $0.84		6,784,251		1.57		0.34		6,784,251		1.57		0.34
$1.10 - $1.66		3,742,060		0.51		1.57		3,742,060		0.51		1.57
		48,936,192		4.11	$	0.20		48,542,442		4.11	$	0.20

Compensation expense of $42,422 and $7,886 was recognized for the vesting of options during the six months ended June 30, 2022 and 2021, respectively. The aggregate intrinsic value of the outstanding options at June 30, 2022 was $0. At June 30, 2022, $5,421 of unamortized compensation expense for time-based unvested options will be recognized over the next 0.06 years on a weighted average basis.

On August 18, 2017, the Company’s management was granted performance-based options to purchase 27.5 million shares of the Company’s common stock at $0.06 per share. The options expire on August 18, 2027. On November 1, 2017, the first fifty percent (50%) of the performance-based options vested as management was able to (i) close the sale of an aggregate of $600,000 of units (consisting of a share of common stock of the Company and a warrant to buy 0.25 of a share of common stock of the Company) at $0.04 per unit and (ii) establish toll processing arrangements with two toll processors of halloysite that, in management’s good faith belief, can process halloysite to the Company’s specifications. An additional twenty-five percent (25%) of the performance-based options vested on January 18, 2018 when management generated $900,000 of additional cash proceeds through (i) the sale of common stock and (ii) the licensing of a right to explore the Dragon Mine property for certain precious metals.

The vesting of the remaining 8.3%, 8.3% and 8.4% of the performance-based options was scheduled to occur when (i) EBITDA is positive over a twelve-month period, (ii) EBITDA is at or greater than $2 million over a twelve-month period and (iii) EBITDA is at or greater than $4 million over a twelve-month period, respectively. Of the 27.5 million performance options granted to management in August 2017, approximately 14.3 million were outstanding at March 31, 2022. The reduction was due to the forfeiture of options to purchase 0.4 million shares of common stock and the exercise of options to purchase approximately 9.5 million shares of common stock during the three months ended March 31, 2021. In July, 2021, the board accelerated the vesting of 1,195,138 options granted to Christopher Carney in August, 2017 and accelerated the vesting of 333,333 options granted in March 2019 to Sharad Mathur, former CTO.

In July 2021 the board approved a grant to management of options to purchase 5.7 million shares of common stock at $0.03 per share. The options have a term of five years. Fifty percent (50%) of the grant vested in July 2021 and the remainder vests in equal monthly amounts through June 2022. In July 2021 the board approved a grant to the directors and a consultant of options to purchase 3.75 million shares of common stock at $0.03 per share. The options have a term of five years. Fifty percent (50%) of the grant vested in July 2021 and the remainder vests in equal monthly amounts through June 2022. The fair value of the options granted in July on the grant date using the Black Scholes model was $169,690. As of June 30, 2022, the Company had $5,421 of unamortized compensation expense.

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PER SHARE DATA

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 11 - PER SHARE DATA

The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the year. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus the common stock equivalents that would arise from the exercise of stock options and warrants outstanding under the treasury method and the average market price per share during the year as well as the conversion of notes.

At June 30, 2022, the weighted average shares outstanding excluded options to purchase 48,936,192 shares of common stock of the Company, warrants to purchase 11,000,000 shares of common stock of the Company and 156,407,336 shares of common stock of the Company issuable upon the conversion of Series A Notes and Series 2023 Notes because their effect would be anti-dilutive.

At December 31, 2021, the weighted average shares outstanding excluded options to purchase 52,790,845 shares of common stock of the Company, warrants to purchase 11,000,000 shares of common stock of the Company and 124,437,208 shares of common stock of the Company issuable upon the conversion of Series A Notes and Series 2023 Notes because their effect would be anti-dilutive.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

NOTE 12 – SUBSEQUENT EVENTS

On June 14, 2022, a former contractor of the Company filed a mining services lien on the Dragon Mine property for an amount of $177,777.78 for labor, services and equipment furnished under a Mining Services Agreement entered into between the Company and the contractor on August 1, 2021. On March 31, 2022, prior to the filing of the lien, the Company had entered into a Settlement Letter with the former contractor for an amount equal to $200,000. Under the terms of the Settlement Letter, the Company agreed to (i) make ten consecutive monthly cash payments of $10,000 to the former contractor beginning in April 2022 and (ii) issued 4,444,444 restricted shares of common stock to the former contractor. If the weighted average trading price of the shares of the Company’s common stock over the five trading days immediately preceding October 1, 2022 (“WATP”) was less than $0.0225 per share, the Company agreed, at its option, to (a) issue to the former contractor a number of shares of common stock equal to ((4,444,444 x (0.0225 – WATP)) / (0.9 x WATP)) or (b) make a cash payment to the former contractor equal to ((4,444,444 x (0.0225 – WATP)). As of June 14, 2022, the Company had made $61,379 in cash payments to the former contractor. On July 27, 2022, the Company entered into a Lien Settlement Agreement with the former contractor. Under the terms of the Lien Settlement Agreement, in exchange for a cash payment of $49,731.90 and the issuance of an additional 17,777,777 shares of common stock, the former contractor agreed to file a release of the mining services lien on the Dragon Mine property. Payment of the Lien Settlement Amount by the Company will also deem the Settlement Letter null and void. On August 15, 2022, the Company received a Notice of Release of Lean from Provo Mining indicating Provo Mining has received the payment stipulated on the Lien Settlement Agreement and the lien placed on the Company's listed assets have been released.

Between July 6, 2022 and July 27, 2022, the Company issued 43,409,524 shares of common stock upon the conversion of the 86,000 shares of Series B Preferred Stock sold by the Company in December 2021. 

On August 9, 2022 the Company closed on the sale of the rights to its iron oxide resource, 20 million shares of common stock, its Alpine Mill building, and related milling equipment. In exchange for $300,000, less a previously paid down payment of $120,000 and $20,000 of reimbursable legal expenses, the Company sold to BMI Minerals Company the rights to its iron oxide resource and 20 million restricted shares of common stock of the Company. In exchange for $1,700,000, the Company sold to Brady McCasland, Inc. its Alpine Mill building and related iron milling equipment. In conjunction with the sale of the Alpine Mill building the Company entered into (i) a ground lease with a term of 100 years, (ii) a Mining Operations Agreement and a (iii) Milling Operations Agreement.

On August 9, 2022, which coincided with the closing of the sale of (i) the rights to the Company’s iron oxide resource and (ii) its Alpine Mill building, the directors forfeited $1,630,811 of accrued but unpaid and two directors forfeited approximately $226,000 of accrued but unpaid compensation.

On August 6, 2022, the Company obtained waivers related to the negative covenants attached to its Series 2023 and Series A PIK Notes which restrict certain activities, in this case its Iron Sale, Mill Sale, Mining Operation, and Milling Operation agreements with BMI and BMC. MB obtained the waivers and noted the majority holders approved to waive the breach of the covenant in exchange for payments of: $244,500 to Samlyn Offshore Master Fund, Ltd., $130,500 to Samlyn Onshore Partners, LP, $250,000 to M. Kingdon Offshore Master Fund, LP, and $125,000 to Berylson Master Fund

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BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Consolidated Condensed Financial Statements and accompanying notes. Actual results may differ materially from those estimates. As of June 30, 2022, the extent to which the effects of the COVID-19 pandemic may impact our business going forward depends on numerous dynamic factors which we cannot reliably predict. As a result, many of our estimates and assumptions still require increased judgment and carry a higher degree of variability and volatility. As the events continue to evolve with respect to the pandemic, our estimates may materially change in future periods.

Concentration of Credit Risk

Concentration of Credit Risk

Cash balances, accounts receivable and derivative financial instruments are financial instruments potentially subject to credit risk. Cash and cash equivalents are maintained in bank deposit accounts, which, at times, may exceed the federally insured limits. Management periodically reviews and assesses the financial condition of the banks to mitigate the risk of loss.

For the six months ended June 30, 2022 and 2021, revenues from the Company’s largest customer accounted for 21% and 58% of total revenues, respectively. As of June 30, 2022 and 2021, amounts owed from these customers comprised 0% and 18% of accounts receivable, respectively.

Receivables

Receivables

Trade receivables are reported at outstanding principal amounts, net of an allowance for doubtful accounts.

Management evaluates the collectability of receivable account balances to determine the allowance, if any. Management considers the other party’s credit risk and financial condition, as well as current and projected economic and market conditions, in determining the amount of the allowance. Receivable balances are written off when management determines that the balance is uncollectable. No allowance was required at June 30, 2022 and December 31, 2021.

Property and Equipment

Property and Equipment

Property and equipment are carried at cost net of accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

	Estimated
	Useful Life (years)
Building and Building Improvements		5 – 40
Mining equipment		2 – 7
Office and shop furniture and equipment		3 – 7
Vehicles		5

Impairment of Long-lived Assets

Impairment of Long-lived Assets

The Company periodically reviews the carrying amounts of long-lived assets to determine whether current events or circumstances warrant adjustment to such carrying amounts. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. When such events occur, the Company compares the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying amount. If this comparison indicates that there is impairment, the amount of the impairment is typically calculated using discounted expected future cash flows where observable fair values are not readily determinable. Considerable management judgment is necessary to estimate the fair value of assets. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value, less cost to sell. The Company has determined that there was no impairment of its long-lived assets as of June 30, 2022 and 2021.

Revenue Recognition

Revenue Recognition

Revenue includes sales of halloysite clay and iron oxide and is recognized when title passes to the buyer and when collectability is reasonably assured. Title passes to the buyer based on terms of the sales contract. Product pricing is determined based on contractual arrangements with the Company’s customers. The Company’s revenue recognition policies are established in accordance with the Revenue Recognition topics of ASC 606, and accordingly, revenue is recognized when control of the promised goods or services is transferred to our clients, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: (1) identify the contracts with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when or as the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods it transfers to the customer. The Company recognizes revenue at a point in time based on management’s evaluation of when performance obligations under the terms of a contract with the customer are satisfied and control of the product has been transferred to the customer. In most situations, transfer of control is considered complete when the products have been shipped to the customer.

Mining Exploration and Development Costs

Mining Exploration and Development Costs

Land and mining property are carried at cost. The Company expenses prospecting and mining exploration costs. At the point when a property is determined to have proven and probable reserves, subsequent development costs will be capitalized and will be charged to operations using the units-of-production method over proven and probable reserves. Upon abandonment or sale of a mineral property, all capitalized costs relating to the specific property are written off in the period abandoned or sold and a gain or loss is recognized.

Income taxes

Income taxes

The Company uses an asset and liability approach which results in the recognition of deferred tax liabilities and assets for the expected future tax consequences or benefits of temporary differences between the financial reporting basis and the tax basis of assets and liabilities, as well as operating loss and tax credit carry forwards, using enacted tax rates in effect in the years in which the differences are expected to reverse.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. A full valuation allowance has been provided for the Company’s net deferred tax assets as it is more likely than not that they will not be realized.

Authoritative guidance provides that the tax effects from an uncertain tax position taken or expected to be taken in a tax return can be recognized in our financial statements only if the position is more likely than not of being sustained on audit based on the technical merits of the position. As of June 30, 2022, no benefit from uncertain tax positions was recognized in our financial statements. The Company has elected to classify interest and/or penalties related to income tax matters in income tax expense.

Stock Options and Warrants

Stock Options and Warrants

The Company follows ASC 718 (Stock Compensation) and ASU 2018-07 (Compensation – Stock Compensation), which provide guidance in accounting for share-based awards exchanged for services rendered and requires companies to expense the estimated fair value of these awards over the requisite service period. The Company instituted a formal long-term and short-term incentive plan on November 20, 2012, which was approved by its shareholders. Prior to that date, we did not have a formal equity plan, but all equity grants, including stock options and warrants, were approved by our Board of Directors. We determine the fair value of the stock-based compensation awards granted to non-employees as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. Beginning in the quarter ended June 30, 2013, the Company began using the simplified method to determine the expected term for any options granted because the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The Company previously utilized the contractual term as the expected term.

Environmental Matters

Environmental Matters

Expenditures for ongoing compliance with environmental regulations that relate to current operations are expensed or capitalized as appropriate. Expenditures resulting from the remediation of existing conditions caused by past operations that do not contribute to future revenue generations are expensed. Liabilities are recognized when environmental assessments indicate that remediation efforts are probable, and the costs can be reasonably estimated.

Estimates of such liabilities are based upon currently available facts, existing technology and presently enacted laws and regulations taking into consideration the likely effects of inflation and other societal and economic factors and include estimates of associated legal costs. These amounts also reflect prior experience in remediating contaminated sites, other companies’ clean-up experience and data released by The Environmental Protection Agency or other organizations. Such estimates are by their nature imprecise and can be expected to be revised over time because of changes in government regulations, operations, technology, and inflation. Recoveries are evaluated separately from the liability and, when recovery is assured, the Company records and reports an asset separately from the associated liability.

The Company has posted a cash bond in the amount of $297,000 required by the Utah Department of Oil, Gas and Minerals to cover estimated reclamation costs related the Company large mining permit for its Dragon Mine property. 

Note Payable - Convertible

Note Payable - Convertible

The Company follows ASC 480-10, Distinguishing Liabilities from Equity (“ASC 480-10”) in its evaluation of the accounting for a certain instrument. A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity shares shall be classified as a liability (or an asset in some circumstances) if, at inception, the monetary value of the obligation is based solely or predominantly on any one of the following: (a) a fixed monetary amount known at inception; (b) variations in something other than the fair value of the issuer’s equity shares; or (c) variations inversely related to changes in the fair value of the issuer’s equity shares. Hybrid instruments meeting these criteria are not further evaluated for any embedded derivatives and are carried as a liability at fair value at each balance sheet date with remeasurements reported in interest expense in the accompanying Consolidated Statements of Operations.

Recent Issued Accounting Pronouncements

Recent Issued Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, which simplifies the guidance on the issuer’s accounting for convertible debt instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, entities will not separately present in equity an embedded conversion feature in such debt and will account for a convertible debt instrument wholly as debt, unless certain other conditions are met. The elimination of these models will reduce reported interest expense and increase reported net income for entities that have issued a convertible instrument that is within the scope of ASU 2020-06. Also, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and treasury stock method will be no longer available. ASU 2020-06 is applicable for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 for its fiscal year ending December 31, 2021.

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BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Property Plant And Equipment Estimated Useful Lives

Property and equipment are carried at cost net of accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the assets, or the life of the lease, whichever is shorter, as follows:

	Estimated
	Useful Life (years)
Building and Building Improvements		5 – 40
Mining equipment		2 – 7
Office and shop furniture and equipment		3 – 7
Vehicles		5

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LEASES (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Line Items]

Schedule Finance Lease Liability Fiscal Year Maturity

The following table summarizes the maturity of lease liability under finance lease as

of June 30, 2022:

2022 (remaining six months)	$	7,049
2023		14,099
2024		14,099
2025		4,700
Total lease payments		39,947
Less: imputed interest		(3,041	)
Total lease liabilities	$	36,906

Equipment [Member]

Leases [Line Items]

Schedule Of Supplemental Cash Flow and Balance Sheet Information Related To Leases

Supplemental balance sheet information related to leases:	As of June 30, 2022
Finance lease Right-of-use assets	$	36,906
Current portion of finance lease liability	$	12,337
Long-term finance lease liability		24,569
Total finance lease liability	$	36,906
Weighted average remaining operating lease term		2.75 years
Weighted average discount rate		6	%

Schedule Finance Lease Liability Fiscal Year Maturity

Supplemental cash flow information related to leases:	Three months ended June 30, 2022			Six months ended June 30, 2022
Finance cash flows from finance lease	$	(3,161	)	$	(5,915	)
Operating cash flows from finance lease	$	3,161		$	5,915

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DEPOSIT (Tables)

6 Months Ended

Jun. 30, 2022

Deposit [Abstract]

Schedule of deposit assets type

The following is a summary of deposit:

	June 30, 2022		December 31, 2021
Cash Bond (Mine Permit deposit)	$	297,219	$	297,160
Office Lease Security Deposit		-		39,168
Total	$	297,219	$	336,328

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NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Notes Payable

Notes payable at June 30, 2022 and December 31, 2021 consist of the following:

	June 30, 2022			December 31, 2021
Note payable to insurance companies, payable $1,780 and $12,804 monthly, (a)	$	26,894		$	112,835
Promissory note (b)	$	62,546		$	-
Loan payable (c)	$	100,051		$
	$	189,491		$	112,835
Less: Current Portion	$	(189,491	)	$	(112,835	)
Notes Payable, Long-Term Portion	$	-		$	-

(a) In October 2021, the Company entered into two notes payable with interest rates of 4.04% and 6.29% with an insurance company for liability insurance, payable in 10 monthly installment payments, which started in November 2021.

(b) In January 2022, the Company entered into a promissory note agreement for $90,000, including an original issue discount of 16.7% resulting in net proceeds of $75,000. The annual interest rate is 10%. Principal and interest is due to the lender in seven equal monthly payments of $14,142.50 commencing on June 24, 2022 until the promissory note is paid in full no later than January 24, 2023. In the event of default, the lender will have the right to convert the outstanding principal and interest into stock at a price equal to ninety (90) percent of the lowest trading price over a ten (10) day trading period immediately prior to the date of conversion. As part of entering into the promissory note agreement, the Company issued 300,000 restricted shares of common stock under the lender.

(c) In March 2022, the Company entered into a loan payable with a lender for $125,000. Payment of the loan includes one installment of $1,215.19 followed by seventy-nine (79) weekly installments of $2,025.32 totalling $165,000. The lender has been provided a security interest in certain inventory and equipment. Excluded is the Company’s Alpine mill and related equipment.

During the six months ended June 30, 2022 and 2021, the Company's interest payments totaled $4,624 and $5,380, respectively.

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CONVERTIBLE DEBT (Tables)

6 Months Ended

Jun. 30, 2022

Debt Instruments [Abstract]

Debt Instrument Redemption

The key terms of the Series A and Series 2023 Notes, as amended, are highlighted in the table below:

Key Terms	Series 2023 Notes	Series A Notes
Inception Date	08/01/2013	11/03/2014
Cash Received	$10,500,000	$12,500,000
Principal (Initial Liability)	$10,500,000	$19,848,486
Maturity (Term)	Matures on August 1, 2023, but convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;	Matures on May 1, 2023 but extends to August 1, 2023 if the Series 2023 Notes are still outstanding. Convertible into shares of the Company’s common stock at the discretion of the holder or by the Company based on the market price of the Company’s stock;
Exercise Price	$0.47, as adjusted downward based on anti-dilution provisions/down-round protection	$0.26, as adjusted downward based on anti-dilution provisions/down-round protection;
Stated Interest	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;	10% per annum through December 14, 2017, 3% per annum thereafter, due semiannually;

Convertible Debt

As of June 30, 2022, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	18,024,680	$	30,372,096		$	48,396,776
Less: Discount		-		(472,104	)		(472,104	)
PIK Note Payable, Net	$	18,024,680	$	29,899,992		$	47,924,672

As of December 31, 2021, the liability components of the PIK Notes on the Company’s balance sheet are listed in the following table:

	Series 2023 Notes		Series A Notes			Total
PIK Note Payable, Gross	$	17,759,822	$	29,925,760		$	47,685,582
Less: Discount		-		(681,102	)		(681,102	)
PIK Note Payable, Net	$	17,759,822	$	29,244,658		$	47,004,480

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OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Tables)

6 Months Ended

Jun. 30, 2022

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Of Warrants Or Rights

A summary of the status and changes of the warrants issued for the six months ended June 30, 2022:

	Shares Issuable
	upon Exercise of		Weighted Average
	Outstanding Warrants		Exercise Price
Outstanding at December 31, 2021		11,000,000	$	0.10
Issued		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at June 30, 2022		11,000,000	$	0.10

Schedule of Stockholders' Equity Note, Warrants or Rights

A summary of the status of the warrants outstanding and exercisable at June 30, 2022 is presented below:

			Warrants Outstanding and Exercisable
			Shares Issuable	Weighted Average
			upon Exercise of	Remaining		Weighted Average
Exercise Price			Outstanding Warrants	Contractual Life (years)		Exercise Price
	$	0.10	11,000,000	0.42	$	0.10
			11,000,000	0.42	$	0.10

Share-based Compensation, Stock Options, Activity

A summary of the status and changes of the options granted under stock option plans and other agreements during the six months ended June 30, 2022:

	Shares Issued Upon Exercise of Options			Weighted Average Exercise Price
Outstanding at December 31, 2021		52,790,845		$	0.25
Granted		-			-
Exercised		-			-
Forfeited		(3,854,653	)		0.79
Outstanding at June 30, 2022		48,936,192		$	0.21

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

A summary of the status of the options outstanding at June 30, 2022 is presented below:

	Options Outstanding						Options Exercisable
Range of per share exercise price	Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price		Shares		Weighted average remaining contractual life (years)		Per share weighted average exercise price
$0.03 - $0.08		38,409,881		4.91	$	0.05		38,016,131		4.92	$	0.05
$0.10 - $0.84		6,784,251		1.57		0.34		6,784,251		1.57		0.34
$1.10 - $1.66		3,742,060		0.51		1.57		3,742,060		0.51		1.57
		48,936,192		4.11	$	0.20		48,542,442		4.11	$	0.20

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) - USD ($)		1 Months Ended	6 Months Ended
	Dec. 22, 2017	Jun. 30, 2021	Jun. 30, 2022	Mar. 25, 2020
U.S. DOE STTR Phase I award [Member]
Proceed from the issue of development process		$ 200,000
Amount of costs incurred under a research and development arrangement		$ 1,150,000
Tintic Copper and Gold, Inc. [Member]
Exploration Agreement Option To Purchase Consideration				$ 1,050,000
Right Of First Offer Value				$ 250,000
CMC [Member]
Exploration Agreement Payments Upon Expiration Of Due Diligence Period	$ 350,000
Exploration Agreement Payments On Or Before First Anniversary Of Effective Date Of Agreement	150,000
Exploration Agreement Payments On Or Before Each Subsequent Anniversary Of Effective Date During Exploration License Term	$ 250,000
Exploration License Agreement Terms			10 years

XML

BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2022
Building and Building Improvements [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	40 years
Building and Building Improvements [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	5 years
Mining equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years
Mining equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	2 years
Office and shop furniture and equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life	7 years
Office and shop furniture and equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Vehicles [Member]
Property, Plant and Equipment, Useful Life	5 years

XML

BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cost of Services, Oil and Gas	$ 297,000
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Largest Customer [Member]
Concentration Risk, Percentage	21.00%	58.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Largest Customer [Member]
Concentration Risk, Percentage	0.00%	18.00%

XML

LEASES (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Leases [Line Items]
Finance cash flows from finance lease		$ (6,029)	$ (2,028)
Equipment [Member]
Leases [Line Items]
Finance cash flows from finance lease	$ (3,161)	(5,915)
Operating cash flows from finance lease	$ 3,161	$ 5,915

XML

LEASES (Details 1) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Leases [Line Items]
Finance lease Right-of-use assets	$ 36,906	$ 42,821
Current portion of finance lease liability	12,337	11,986
Long-term finance lease liability	24,569	$ 30,835
Equipment [Member]
Leases [Line Items]
Finance lease Right-of-use assets	36,906
Current portion of finance lease liability	12,337
Long-term finance lease liability	24,569
Total finance lease liability	$ 36,906
Weighted average remaining operating lease term	2 years 9 months
Weighted average discount rate	6.00%

XML

LEASES (Details 2) - Equipment [Member]	Jun. 30, 2022 USD ($)
Leases [Line Items]
2022 (remaining six months)	$ 7,049
2023	14,099
2024	14,099
2025	4,700
Total lease payments	39,947
Less: imputed interest	(3,041)
Total lease liabilities	$ 36,906

XML

LEASES (Details Textual)	May 14, 2021 USD ($)
Leases [Line Items]
Finance lease agreement term	4 years
Finance Leases, Rent Expense, Minimum Rentals	$ 1,107

XML

DEPOSIT (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Schedule Of Deposit Assets Type [Line Items]
Deposits Assets	$ 297,219	$ 336,328
Cash Bond (Mine Permit deposit) [Member]
Schedule Of Deposit Assets Type [Line Items]
Deposits Assets	297,219	297,160
Office Lease Security Deposit [Member]
Schedule Of Deposit Assets Type [Line Items]
Deposits Assets	$ 0	$ 39,168

XML

NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Note Payable Mining Equipment	$ 189,491	$ 112,835
Less: Current Portion	(189,491)	(112,835)
Notes Payable, Long-Term Portion	0	0
Note Payable Insurance Company One [Member]
Note Payable Mining Equipment	26,894	112,835
Promissory Note [Member]
Note Payable Mining Equipment	62,546	$ 0
Loan Payable [Member]
Note Payable Mining Equipment	$ 100,051

XML

NOTES PAYABLE - Summary of Note Payable (Details) (Parenthetical) - Note Payable Insurance Company One [Member]	6 Months Ended
	Jun. 30, 2022 USD ($)
Minimum [Member]
Note payable, monthly payment	$ 1,780
Maximum [Member]
Note payable, monthly payment	$ 12,804

XML

NOTES PAYABLE (Details Textual)			1 Months Ended	6 Months Ended
	Mar. 09, 2022 USD ($) wk	Oct. 31, 2021	Jan. 31, 2022 USD ($) Day shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2021 USD ($)	Dec. 31, 2021 shares
Common Stock, Shares, Issued | shares				285,787,382		217,655,150
Interest paid				$ 4,624	$ 5,380
Small Business Financial Solutions, LLC Member [Member]
Debt Instrument, Face Amount	$ 125,000
Debt Instrument Number Of Monthly Instalments | wk	79
Note Payable Insurance Company One [Member] | Small Business Financial Solutions, LLC Member [Member]
Debt Instrument, Periodic Payment	$ 1,215.19
Note Payable Insurance Company Two [Member] | Small Business Financial Solutions, LLC Member [Member]
Debt Instrument, Periodic Payment	2,025.32
Note Payable Insurance Company Three [Member] | Small Business Financial Solutions, LLC Member [Member]
Debt Instrument, Periodic Payment	$ 165,000
Notes Payable Others [Member]
Debt Instrument, Term		10 months
Promissory Note [Member]
Debt Instrument, Face Amount			$ 90,000
Debt Instrument, Periodic Payment			$ 14,142.5
Debt Instrument, Discount rate			16.70%
Proceeds from debt			$ 75,000
Debt Instrument, Interest Rate Terms			10
Debt Instrument, Maturity Date Range, End			Jan. 24, 2023
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger			90.00%
Debt Instrument, Convertible, Threshold Trading Days | Day			10
Common Stock, Shares, Issued | shares			300,000
Maximum [Member] | Note Payable Insurance Company One [Member]
Debt Instrument, Periodic Payment				12,804
Maximum [Member] | Notes Payable Others [Member]
Debt Instrument, Interest Rate, Stated Percentage		6.29%
Minimum [Member] | Note Payable Insurance Company One [Member]
Debt Instrument, Periodic Payment				$ 1,780
Minimum [Member] | Notes Payable Others [Member]
Debt Instrument, Interest Rate, Stated Percentage		4.04%

XML

CONVERTIBLE DEBT (Details) - USD ($)	Nov. 03, 2014	Jun. 30, 2022
Series 2023 Notes [Member]
Inception Date	Aug. 01, 2013
Cash Received	$ 10,500,000
Principal (Initial Liability)	$ 10,500,000
Maturity (Term)	Aug. 01, 2023
Exercise Price	$ 0.47
Stated Interest	10.00%
Payments	In April 2019 the Company entered into a settlement agreement with the holders of the Series A Notes and Series 2023 Notes (the “PIK Notes”). Per the terms of the agreement the Company will pay to holders of PIK Notes on a pro rata basis the following percentages of revenue booked during a fiscal quarter: (a) three percent (3%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter; or (b) five percent (5%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million the last day of the fiscal quarter; or (c) twelve percent (12%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million.
Series A Notes [Member]
Inception Date	Nov. 03, 2014
Cash Received	$ 12,500,000
Principal (Initial Liability)	$ 19,848,486
Maturity (Term)	May 01, 2023
Exercise Price	$ 0.26
Stated Interest	10.00%	10.00%
Payments	In April 2019 the Company entered into a settlement agreement with the holders of the Series A Notes and Series 2023 Notes (the “PIK Notes”). Per the terms of the agreement the Company will pay to holders of PIK Notes on a pro rata basis the following percentages of revenue booked during a fiscal quarter: (a) three percent (3%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is less than $3 million on the last day of the fiscal quarter; or (b) five percent (5%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $3 million but less than $5 million the last day of the fiscal quarter; or (c) twelve percent (12%) of gross revenues if cash or cash equivalents on the Company’s balance sheet or otherwise is greater than $5 million.

XML

CONVERTIBLE DEBT (Details 1) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Less: Discount	$ (472,104)	$ (681,102)
PIK Note Payable, Net	47,924,672	47,004,480
Payment in Kind (PIK) Note [Member]
PIK Note Payable, Gross	48,396,776	47,685,582
Less: Discount	(472,104)	(681,102)
PIK Note Payable, Net	47,924,672	47,004,480
Series 2023 Notes [Member] | Payment in Kind (PIK) Note [Member]
PIK Note Payable, Gross	18,024,680	17,759,822
Less: Discount	0	0
PIK Note Payable, Net	18,024,680	17,759,822
Series A Notes [Member]
PIK Note Payable, Gross	105,186
Series A Notes [Member] | Payment in Kind (PIK) Note [Member]
PIK Note Payable, Gross	30,372,096	29,925,760
Less: Discount	(472,104)	(681,102)
PIK Note Payable, Net	$ 29,899,992	$ 29,244,658

XML

CONVERTIBLE DEBT (Details Textual)			6 Months Ended		24 Months Ended
	Nov. 03, 2014 USD ($) Trading $ / shares	Aug. 01, 2013 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2014 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Dec. 31, 2013 $ / shares	Aug. 05, 2013 $ / shares
Debt Instrument, Unamortized Discount, Total			$ 472,104			$ 681,102
Accrued interest paid through the issuance of PIK Notes			716,078	$ 703,260
Mandatory Conversion of Note if Condition 1 Exists [Member]
Debt Instrument, Convertible, Threshold Consecutive Trading Days | Trading	30
Payment in Kind (PIK) Note [Member]
Proceeds from Convertible Debt					$ 23,000,000
Debt Instrument, Unamortized Discount, Total			472,104			681,102
Carrying value			$ 48,396,776			47,685,582
Series A Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage	10.00%		10.00%
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 0.26
Debt Instrument, Face Amount	$ 19,848,486
Proceeds from Convertible Debt	$ 12,500,000
Debt Instrument, Maturity Date	May 01, 2023
Convertible Notes Payable			$ 29,899,992
Carrying value			105,186
Interest Expense, Debt			449,384
Series A Notes [Member] | Geoffrey Scott [Member]
Convertible Notes Payable			4,642,137
Series A Notes [Member] | Payment in Kind (PIK) Note [Member]
Debt Instrument, Interest Rate, Stated Percentage	10.00%				10.00%
Debt Instrument, Convertible, Conversion Price | $ / shares					$ 0.9
Debt Instrument, Face Amount	$ 19,848,486
Proceeds from Convertible Debt	12,500,000
Debt Instrument, Convertible, Beneficial Conversion Feature	9,212,285
Debt Instrument Unamortized Discount Difference Between Cash Received And Principal	$ 7,348,486
Debt Instrument, Unamortized Discount, Total			472,104			681,102
Carrying value			30,372,096			29,925,760
Series A Notes [Member] | Payment in Kind (PIK) Note [Member] | Specified Event [Member]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Series A Notes [Member] | Payment in Kind (PIK) Note [Member] | Mandatory Conversion of Note if Condition 1 Exists [Member]
Debt Instrument, Convertible, Stock Price Trigger | $ / shares	$ 1
Series A Notes [Member] | Payment in Kind (PIK) Note [Member] | Mandatory Conversion of Note if Condition 2 Exists [Member]
Debt Instrument, Convertible, Threshold Consecutive Trading Days | Trading	10
Debt Instrument, Convertible, Stock Price Trigger | $ / shares	$ 1.4
Series 2023 Notes [Member]
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Debt Instrument, Convertible, Conversion Price | $ / shares	$ 0.47
Debt Instrument, Face Amount	$ 10,500,000
Proceeds from Convertible Debt	$ 10,500,000
Debt Instrument, Maturity Date	Aug. 01, 2023
Series 2023 Notes [Member] | Payment in Kind (PIK) Note [Member]
Debt Instrument, Interest Rate, Stated Percentage		10.00%					10.00%
Debt Instrument, Convertible, Conversion Price | $ / shares							$ 1.4	$ 0.59
Proceeds from Convertible Debt		$ 10,500,000
Convertible Notes Payable, Noncurrent			18,024,680
Debt Instrument, Unamortized Discount, Total			0			0
Accrued interest paid through the issuance of PIK Notes			266,694
Carrying value			$ 18,024,680			$ 17,759,822
Series 2023 Pik Note Derivative Liability [Member]
Debt Instrument, Convertible, Beneficial Conversion Feature		$ 2,055,000
Monte carlo model [Member] | Series A Notes [Member] | Payment in Kind (PIK) Note [Member]
Debt Instrument, Unamortized Discount, Total	$ 16,560,771
Warrants Issued To Series 2023 Notes Holders [Member]
Financial Instrument Subject To Mandatory Conversion Period For Calculation Of Conversion Feature		10 years
Warrants Issued To Series A Notes Holders [Member]
Financial Instrument Subject To Mandatory Conversion Period For Calculation Of Conversion Feature	9 years

XML

STOCKHOLDERS' EQUITY (Details Textual)				1 Months Ended		3 Months Ended		6 Months Ended
	May 03, 2022 USD ($) shares	May 24, 2021 USD ($) $ / shares shares	Feb. 17, 2021 USD ($) $ / shares shares	Sep. 30, 2021 shares	Aug. 31, 2021 shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) Days $ / shares shares	Jun. 30, 2021 USD ($) shares	Mar. 03, 2022 $ / shares	Dec. 31, 2021 $ / shares shares
Preferred Stock, Shares Authorized						10,000,000		10,000,000			10,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares						$ 0.001		$ 0.001			$ 0.001
Preferred Stock, Shares Outstanding						164,000		164,000			262,000
Preferred stock, Shares Issued						164,000		164,000			262,000
Common Stock, Shares Authorized						700,000,000		700,000,000			700,000,000
Common Stock, Par or Stated Value Per Share | $ / shares						$ 0.001		$ 0.001			$ 0.001
Common Stock, Shares, Issued						285,787,382		285,787,382			217,655,150
Common Stock, Shares, Outstanding						285,787,382		285,787,382			217,655,150
Issuance of shares of common stock for consulting services									9,528,689
Preferred stock conversion basis								The conversion price (the “Conversion Price”) shall equal the 61% multiplied by the Market Price (representing a discount rate of 39%). “Market Price” means the lowest Trading Price for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date.
Beneficial conversion feature on Convertible Series B Preferred Stock | $						$ 25,947	$ 51,874	$ 25,947	$ 112,612
Preferred Stock Share Issued Upon Conversion								20,164,153
Issuance of shares for debt issuance cost | $								$ 1,740
Series B Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share | $ / shares		$ 1.084	$ 1.084							$ 1
Preferred Stock, Shares Outstanding						164,000		164,000			262,000
Preferred stock, Shares Issued	78,000	81,136	95,000			164,000		164,000			262,000
Payments of Stock Issuance Costs | $	$ 3,000	$ 3,000	$ 3,000
Proceeds from Issuance of Preferred Stock | $	75,000	85,000	100,000
Preferred stock dividend rate								12.00%
Preferred stock redemption days | Days								180
Preferred stock conversion price percentage based on market price								61
Preferred Stock Conversion Price Discount Rate								39
Beneficial conversion feature on Convertible Series B Preferred Stock | $	$ 49,869	$ 51,874	$ 60,738
Preferred Stock Share Issued Upon Conversion					35,000
Common Stock [Member]
Common Stock, Shares Authorized						700,000,000		700,000,000
Common Stock, Par or Stated Value Per Share | $ / shares						$ 0.001		$ 0.001
Common Stock, Shares, Issued						285,787,382		285,787,382			217,655,150
Common Stock, Shares, Outstanding						285,787,382		285,787,382			217,655,150
Issuance of shares of common stock for consulting services								10,000,000	3,836,475
Conversion of Stock, Shares Issued				66,000				75,000	128,000
Preferred Stock Share Issued Upon Conversion				23,948,635	9,275,000	33,223,635		53,387,788	6,167,273
Shares issued as part of settlement of liability								4,444,444	1,162,791
Issuance of shares of common stock for debt issuance cost								300,000
Issuance of shares for debt issuance cost | $								$ 300	$ 58,140

XML

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issuable upon Exercise of Outstanding Warrants, Outstanding at January 1, 2019	11,000,000
Shares Issuable upon Exercise of Outstanding Warrants, Issued	0
Shares Issuable upon Exercise of Outstanding Warrants, Exercised	0
Shares Issuable upon Exercise of Outstanding Warrants, Forfeited	0
Shares Issuable upon Exercise of Outstanding Warrants, Outstanding at June 30, 2019	11,000,000
Weighted Average Exercise Price, Outstanding at January 1, 2019 | $ / shares	$ 0.1
Weighted Average Exercise Price, Issued | $ / shares	0
Weighted Average Exercise Price, Forfeited | $ / shares	0
Weighted Average Exercise Price, Outstanding at June 30, 2019 | $ / shares	$ 0.1

XML

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 1) - Warrant [Member] - $ / shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price	$ 0.1	$ 0.1
Shares Issuable upon Exercise of Outstanding Warrants	11,000,000	11,000,000
Weighted Average Remaining Contractual Life (years)	5 months 1 day
Weighted Average Exercise Price	$ 0.1
Exercise Price 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Price	$ 0.1
Shares Issuable upon Exercise of Outstanding Warrants	11,000,000
Weighted Average Remaining Contractual Life (years)	5 months 1 day
Weighted Average Exercise Price	$ 0.1

XML

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 3) - $ / shares	1 Months Ended	6 Months Ended
	Jul. 31, 2021	Jun. 30, 2022
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning of year (in shares)		52,790,845
Granted (in shares)	3,750,000	0
Exercised (in shares)		0
Forfeited (in shares)		(3,854,653)
Outstanding at end of year (in shares)		48,936,192
Outstanding at beginning of year (in dollars per share)		$ 0.25
Granted (in dollars per share)	$ 0.03	0
Exercised (in dollars per share)		0
Forfeited (in dollars per share)		0.79
Outstanding at end of year (in dollars per share)		$ 0.21

XML

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details 4)	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Options Outstanding	48,936,192
Options Outstanding, Weighted Average Remaining Contractual Life (Year)	4 years 1 month 9 days
Weighted Average Exercise Price, Outstanding | $ / shares	$ 0.2
Number of Options Exercisable	48,542,442
Options Exercisable, Weighted Average Remaining Contracrual Life (Year)	4 years 1 month 9 days
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.2
Range of Exercise Prices (0.03 - 0.08) [Member]
Number of Options Outstanding	38,409,881
Options Outstanding, Weighted Average Remaining Contractual Life (Year)	4 years 10 months 28 days
Weighted Average Exercise Price, Outstanding | $ / shares	$ 0.05
Number of Options Exercisable	38,016,131
Options Exercisable, Weighted Average Remaining Contracrual Life (Year)	4 years 11 months 1 day
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.05
Range of Exercise Prices (0.03 - 0.08) [Member] | Maximum [Member]
Number of Options Exercisable	0.08
Range of Exercise Prices (0.03 - 0.08) [Member] | Minimum [Member]
Number of Options Exercisable	0.03
Range of Exercise Prices (0.10 - 0.84) [Member]
Number of Options Outstanding	6,784,251
Options Outstanding, Weighted Average Remaining Contractual Life (Year)	1 year 6 months 25 days
Weighted Average Exercise Price, Outstanding | $ / shares	$ 0.34
Number of Options Exercisable	6,784,251
Options Exercisable, Weighted Average Remaining Contracrual Life (Year)	1 year 6 months 25 days
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.34
Range of Exercise Prices (0.10 - 0.84) [Member] | Maximum [Member]
Number of Options Exercisable	0.84
Range of Exercise Prices (0.10 - 0.84) [Member] | Minimum [Member]
Number of Options Exercisable	0.1
Range of Exercise Prices (1.10 - 1.66) [Member]
Number of Options Outstanding	3,742,060
Options Outstanding, Weighted Average Remaining Contractual Life (Year)	6 months 3 days
Weighted Average Exercise Price, Outstanding | $ / shares	$ 1.57
Number of Options Exercisable	3,742,060
Options Exercisable, Weighted Average Remaining Contracrual Life (Year)	6 months 3 days
Weighted Average Exercise Price, Exercisable | $ / shares	$ 1.57
Range of Exercise Prices (1.10 - 1.66) [Member] | Maximum [Member]
Number of Options Exercisable	1.66
Range of Exercise Prices (1.10 - 1.66) [Member] | Minimum [Member]
Number of Options Exercisable	1.1

XML

OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK (Details Textual)	1 Months Ended				3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) shares	Jul. 31, 2021 $ / shares shares	Mar. 31, 2019 shares	Aug. 18, 2017 USD ($) $ / shares $ / item shares	Mar. 31, 2021 shares	Jun. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Mar. 31, 2022 shares	Jan. 18, 2018 USD ($)	Dec. 07, 2016 shares	Nov. 20, 2012 shares
Granted (in shares)		3,750,000				0
Granted (in dollars per share) | $ / shares		$ 0.03				$ 0
Price Per Unit | $ / item				0.04
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $	$ 0					$ 0
Performance based Options Vesting Feature Close Sale Of Units Amount | $				$ 600,000
Fair value, recognized as unamortized compensation | $	5,421					$ 5,421
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						21 days
Fair value options, granted | $	$ 169,690
Number of Shares Available for Grant	0					0
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $	$ 5,421					$ 5,421
LTIP [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized											8,900,000
Incentive Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized										15,000,000
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				50.00%
Performance Based Options [Member]
Granted (in shares)				27,500,000
Granted (in dollars per share) | $ / shares				$ 0.06
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date				Aug. 18, 2027
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Outstanding								14.3
Share-based Compensation Arrangement by Share-based Payment Award, Options, forefeiture in Period					400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, exercise in Period					9,500,000
Performance Based Options [Member] | Share-based Compensation Award, Tranche Two [Member]
Performance Based Options Vesting Feature Additional Cash Proceeds | $									$ 900,000
Performance Based Options [Member] | Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				8.30%
Performance Based Options [Member] | Sharebased Compensation Award Tranche Four [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				8.30%
Performance based Options Vesting Feature EBITDA Minimum Value Over 12 Month Period | $				$ 2,000,000
Performance Based Options [Member] | Sharebased Compensation Award Tranche Five [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				8.40%
Performance based Options Vesting Feature EBITDA Minimum Value Over 12 Month Period | $				$ 4,000,000
Employee Stock Option [Member]
Allocated Share-based Compensation Expense | $						$ 42,422	$ 7,886
Share based compensation arrangement by share based payment award accelerated vesting, number			333,333			1,195,138
Employee Stock Option [Member] | Management [Member]
Granted (in shares)		5,700,000
Granted (in dollars per share) | $ / shares		$ 0.03
Employee Stock Option [Member] | Share-based Compensation Award, Tranche One [Member] | Management [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Employee Stock Option [Member] | Share-based Compensation Award, Tranche One [Member] | Directors and a Consultant [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		50.00%
Warrants In Connection With Units [Member]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right				0.25

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PER SHARE DATA (Details Textual) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	48,936,192	52,790,845
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	11,000,000	11,000,000
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	156,407,336	124,437,208

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SUBSEQUENT EVENTS (Details Textual) - USD ($)						3 Months Ended	6 Months Ended
	Aug. 09, 2022	Jul. 27, 2022	Jul. 06, 2022	Jun. 14, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2021	Aug. 06, 2022	May 03, 2022	Aug. 01, 2021
Subsequent Event [Line Items]
Stock Issued During Period, Value, New Issues						$ 85,000	$ 185,000
Dragon Mine Property [Member] | Former Contractor [Member]
Subsequent Event [Line Items]
Loss contingency, estimate of possible loss										$ 177,777.78
Litigation settlement, amount awarded to other party					$ 200,000
Loss contingency, settlement agreement, terms					ten
Litigation settlement expense					$ 10,000
Stock issued during period, shares, new issues					4,444,444
Shares Issued, Price Per Share									$ 0.0225
Litigation settlement, description					number of shares of common stock equal to ((4,444,444 x (0.0225 – WATP)) / (0.9 x WATP)) or (b) make a cash payment to the former contractor equal to ((4,444,444 x (0.0225 – WATP))
Loss contingency, damages Paid, Value				$ 61,379
Subsequent Event [Member]
Subsequent Event [Line Items]
Stock issued during period, shares, new issues			43,409,524
Subsequent Event [Member] | Iron Oxide Resource [Member]
Subsequent Event [Line Items]
Compensated Absences Liability	$ 1,630,811
Subsequent Event [Member] | Alpine Mill Building [Member]
Subsequent Event [Line Items]
Compensated Absences Liability	$ 226,000
Subsequent Event [Member] | BMI Minerals Company [Member]
Subsequent Event [Line Items]
Stock issued during period, shares, new issues	20
Subsequent Event [Member] | Ground Lease [Member]
Subsequent Event [Line Items]
Lessee, operating lease, term of contract	100 years
Subsequent Event [Member] | Dragon Mine Property [Member] | Former Contractor [Member]
Subsequent Event [Line Items]
Loss contingency, damages Paid, Value		$ 49,731.9
Loss contingency accrual, payments	$ 300,000
Proceeds from sale of property, plant, and equipment	1,700,000
Stock issued during the period shares settlement agreement shares		17,777,777
Subsequent Event [Member] | Dragon Mine Property [Member] | Former Contractor [Member] | Minimum [Member]
Subsequent Event [Line Items]
Reimbursable legal expenses	120,000
Subsequent Event [Member] | Dragon Mine Property [Member] | Former Contractor [Member] | Maximum [Member]
Subsequent Event [Line Items]
Reimbursable legal expenses	20,000
Subsequent Event [Member] | Samlyn Offshore Master Fund [Member]
Subsequent Event [Line Items]
Exchange for payments								$ 244,500
Subsequent Event [Member] | Samlyn Onshore Fund [Member]
Subsequent Event [Line Items]
Exchange for payments								130,500
Subsequent Event [Member] | M. Kingdon Offshore Master Fund, LP [Member]
Subsequent Event [Line Items]
Exchange for payments								250,000
Subsequent Event [Member] | Berylson Master Fund [Member]
Subsequent Event [Line Items]
Exchange for payments								$ 125,000
Subsequent Event [Member] | Series B Preferred Stock [Member] | Dragon Mine Property [Member] | Former Contractor [Member]
Subsequent Event [Line Items]
Number of common stock issued upon conversion		86,000
Subsequent Event [Member] | Restricted Common Stock [Member] | Dragon Mine Property [Member] | Former Contractor [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Value, New Issues	$ 20,000,000